Tata Motors Limited, formerly known as TML Commercial Vehicles Limited, reported a strong financial performance for the second quarter of FY27, with consolidated revenue increasing 36% year-on-year to ₹25,338 crore, compared with ₹18,585 crore in Q2 FY26.
The company reported a consolidated net profit attributable to shareholders of ₹1,257 crore, compared with a loss of ₹867 crore in the corresponding quarter of the previous financial year.
Consolidated EBITDA increased 31% year-on-year to approximately ₹2,800 crore. However, the EBITDA margin declined 40 basis points to 10.9%, reflecting the impact of higher commodity costs.
The company’s performance was supported by higher commercial vehicle sales, with total wholesales increasing 42% to 135,100 units during the quarter.
Tata Motors Q2 Results: Key Financial Highlights
Tata Motors reported growth in revenue, EBITDA and profitability during the September 2026 quarter.
Consolidated Performance:
- Revenue from Operations: ₹25,338 crore, up 36% year-on-year.
- EBITDA: Approximately ₹2,800 crore, up 31%.
- EBITDA Margin: 10.9%, compared with 11.3% in Q2 FY26.
- Profit Before Tax (before exceptional items): ₹1,780 crore.
- Net Profit attributable to shareholders: ₹1,257 crore, compared with a loss of ₹867 crore in Q2 FY26.
- Free Cash Flow: ₹3,044 crore.
Standalone Performance:
- Revenue: ₹23,930 crore, up 42% year-on-year.
- EBITDA: Approximately ₹2,800 crore, up 31%.
- EBITDA Margin: 11.7%.
- Profit Before Tax (before exceptional items): ₹2,660 crore, up ₹903 crore year-on-year.
- Free Cash Flow: ₹4,606 crore.
Commercial Vehicle Sales Increase 42%
Tata Motors recorded total commercial vehicle wholesales of 135,100 units during Q2 FY27, registering a 42% year-on-year increase.
Domestic volumes grew 30%, while exports recorded a significant increase of 177% compared with the corresponding quarter last year.
The company’s domestic and export performance contributed to its higher quarterly revenue. Its overall domestic commercial vehicle VAHAN market share for H1 FY27 stood at 36.2%, an increase of 110 basis points compared with FY26.
Rising Commodity Costs Impact Margins
Despite strong revenue growth, Tata Motors continued to face pressure from rising commodity costs, particularly metals and tyre rubber.
The company’s consolidated EBITDA margin declined by 40 basis points to 10.9% during the quarter.
The management highlighted that operating efficiencies, disciplined pricing actions and cost-control measures helped partially offset the impact of higher input costs.
The company had also implemented vehicle price increases from October 1, 2026, to manage the rising cost environment.
Tata Motors H1 FY27 Financial Performance
For the first half of FY27, Tata Motors reported growth in its consolidated financial performance.
- Revenue: ₹46,005 crore, up 28% year-on-year.
- EBITDA Margin: 10.9%, compared with 11.5% in H1 FY26.
- Profit Before Tax (before exceptional items): ₹4,829 crore.
- Free Cash Flow: ₹3,404 crore.
On a standalone basis, revenue reached ₹43,259 crore, registering 33% growth compared with the corresponding period of the previous financial year.
Standalone free cash flow stood at ₹5,721 crore during H1 FY27.
Management Outlook
The management expects the commercial vehicle industry’s growth rate to moderate during the second half of FY27 due to a higher base in the corresponding period last year. However, the company expects the industry to maintain double-digit growth for the full financial year.
The company also remains focused on managing commodity cost pressures through calibrated pricing actions, operational efficiencies and cost-control measures.
Conclusion
Tata Motors delivered a strong Q2 FY27 performance, supported by higher commercial vehicle volumes and improved revenue growth. The company returned to consolidated profitability, reporting a net profit of ₹1,257 crore against a loss in the year-ago quarter.
However, rising commodity costs continued to put pressure on margins. Going forward, commercial vehicle demand, export growth, commodity prices and cost-management initiatives will remain important factors to watch.
Source: Tata Motors Limited’s official Q2 and H1 FY27 financial results and press release dated October 23, 2026.
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