Tata Motors (TMCV) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 wholesales reached 135.1K units, up 42% YoY; growth was broad-based, with international volumes up 177%.

• Higher volumes lifted standalone revenue 42% YoY; sequential EBITDA margin held steady despite commodity inflation, supported by operating leverage, pricing and cost efficiency.

• H1 domestic market share rose 110 bps versus FY26 to 36.2%; H2 growth rates were expected to moderate against a higher base.

Financial highlights

• Standalone Q2 revenue was ₹23,930 Cr, up 42% YoY; EBITDA was ₹2,806 Cr, up 31%, with an 11.7% margin, down 90 bps YoY and flat QoQ.

• Standalone EBIT was ₹2,300 Cr at a 9.7% margin, down 50 bps YoY; PBT before exceptional items was ₹2,660 Cr, up 51%, and PAT was ₹2,138 Cr versus a loss of ₹1,021 Cr.

• Consolidated revenue was ₹25,338 Cr, up 36% YoY; EBITDA was ₹2,770 Cr, up 31%, at a 10.9% margin, down 40 bps; EBIT margin was 8.9%, up 20 bps.

• Consolidated PBT before exceptional items was ₹1,780 Cr versus a loss of ₹551 Cr; PAT was ₹1,253 Cr versus a loss of ₹867 Cr.

• Q2 standalone free cash flow was ₹4,606 Cr and consolidated free cash flow ₹3,044 Cr; H1 standalone free cash flow was ₹5,721 Cr.

Outlook and guidance

• Q3 demand growth was expected at high-single-digit to low-double-digit levels; ILMCV and CV passenger were expected to grow at double-digit rates, with HCV and SCV at the higher end of single digits.

• Q3 commodity cost impact was expected to increase a further 150–200 bps, depending on commodity prices, with steel and rubber the largest drivers.

• Four pricing actions were taken during the year: ~1% in January, ~2% in April, 2.5% in July and 1%–2% from October 1, varying by segment; disciplined pricing and cost management remained priorities.

• Q3 and Q4 free cash flow was expected to remain positive; part of Q2’s working-capital release was timing-related and expected to partially reverse.

• SCV pickup EV salience was ~12% in Q2 and could reach 20% in Q4, supported by supply-chain debottlenecking and Delhi-NCR registration rules effective January 1.