Overview
- Net Profit Explosion: ₹76,170 crore in Q2FY26—22xYoY from ₹3,056 Cr—thanks to ₹82,616 Cr demerger gain.
- Underlying Loss: Excluding a one-time ₹6,368 Cr loss due to JLR volume drop and costs.
- Revenue Dip: Consolidated ₹71,714 Cr, down 13.4% YoY from ₹82,841 Cr; 18% QoQ from ₹87,141 Cr.
- JLR Drag: Revenue -24.3% to £4.9B; EBIT margin -8.6% vs +5.1% YoY; PBT loss £485M.
- Domestic Rebound: PV revenue +15.6% YoY to ₹13,500 Cr; 1.44 lakh units sold (+11%).
- FY26 JLR Outlook: EBIT margin cut to 0–2% on cyber issues, Jaguar wind-down, and tariffs.
- Outlook: Confident on volume growth via Sierra and Harrier/Safari petrol; cost cuts ahead.
Tata Motors PV Q2 Results 2025: Demerger Boosts Profit to ₹76K Cr—But JLR Woes Mask Underlying ₹6K Cr Loss
Tata Motors Passenger Vehicles Ltd (TMPV) reported a stunning 22-fold net profit surge to ₹76,170 crore in Q2FY26 (Jul–Sep), powered by a one-time ₹82,616 crore gain from the commercial vehicles demerger. However, stripping this exceptional item reveals a ₹6,368 crore loss—a stark contrast to last year’s ₹3,056 crore profit—as Jaguar Land Rover (JLR) volumes plunged and costs soared. Consolidated revenue slipped 13.4% YoY to ₹71,714 crore, with JLR down 24.3% to £4.9 billion.
Domestic PV business showed resilience, with revenue up 15.6% YoY to ₹13,500 crore on 1.44 lakh units sold (+11%). TMPV cut JLR’s FY26 EBIT margin to 0–2% citing cyber disruptions, the Jaguar model phase-out, U.S. tariffs, and volume pressures. Looking ahead, Tata remains optimistic about growth from the Sierra launch and the Harrier/Safari petrol variants.
Profit Surge: Demerger Magic vs Reality
- Net Profit: ₹76,170 Cr (+2,392% YoY)
- One-Time Gain: ₹82,616 Cr from demerger
- Adjusted Loss: ₹6,368 Cr (vs ₹3,056 Cr profit YoY)
- EBITDA: Loss of ₹1,404 Cr (vs ₹9,914 Cr YoY)
Revenue Breakdown: JLR Hurts, Domestic Helps
| Segment | Q2FY26 Revenue | YoY Change |
|---|---|---|
| Consolidated | ₹71,714 Cr | -13.4% |
| JLR | £4.9B | -24.3% |
| Domestic PV | ₹13,500 Cr | +15.6% |
| Units Sold (PV) | 1.44 lakh | +11% |
- QoQ Revenue: -18% from ₹87,141 Cr (Q1FY26)
JLR Deep Dive: Margins Crushed, Outlook Cut
- PBT Loss: £485M (vs £398M profit YoY)
- PAT Loss: £559M (incl. £238M exceptional charges)
- EBIT Margin: -8.6% (vs +5.1% YoY)
- FY26 Guidance: 0–2% EBIT (down from prior); cyber, Jaguar sunset, tariffs, volumes.
- VME Impact: Higher variable marketing expenses.
Domestic PV: Festive Fireworks & Future Bets
- Volume Driver: GST cuts + festive demand; 1.44 lakh units.
- Revenue Boost: +15.6% YoY; EBITDA margin 5.8% (-40 bps).
- Mix Benefits: Adverse realizations offset by volumes, commodity savings.
- Pipeline: Sierra nameplate, Harrier/Safari petrol to fuel growth.
- Confidence: Cost reductions, improved mix for profitability.
Strategic Moves: Structural Cost Cuts
- Operational Levers: Volume interventions, new products, mix optimization.
- Profit Path: Q3–Q4 recovery via Sierra and the petrol duo.
Conclusion: Demerger High, JLR Low—Tata Charts Recovery
Tata Motors PV’s Q2FY26 is a tale of two stories: ₹76K Cr profit from fireworks from the demerger vs ₹6K Cr loss on JLR woes. With revenue down 13.4% and margins crushed, domestic PV’s 15.6% growth offers hope. As JLR trims FY26 to 0–2%, Tata banks on Sierra, the petrol Harrier/Safari, and cost discipline for turnaround. The EV journey? Steady, but hybrids shine brighter.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies, and not of EV Drive. We advise investors to check with certified experts before making any investment decisions.
Source: livemint.com
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