Kochi, 15th November, 2025: Tata Motors Ltd. (TML) announced its results for the quarter ending September 30, 2025, with the Commercial Vehicles (CV) business delivering a strong Q2 FY26 performance driven by a 12% YoY increase in volumes and continued focus on profitable growth.
EBITDA margins improved to 12.2% (+150 bps), and EBIT margin rose to 9.8% (+200 bps), supported by strong volumes and favourable realizations. PBT (bei) showed strong performance for the quarter.
The company continued to generate high cash flows, marking its highest-ever H1 free cash flow. ROCE improved to 45% (vs 37% in Q2 FY25), driven by stronger margins and growth in non-cyclical businesses. Net debt for the domestic business remained low.
Consolidated Financial Performance
Consolidated performance remained steady, with EBITDA and EBIT margins improving despite acquisition-related costs. Reported profits were impacted by Mark-to-Market adjustments related to recently listed investments, resulting in a lower consolidated PBT and Net Income for the quarter.
The company remains Net Cash positive, supported by prudent financial management and strong operational fundamentals.
Corporate Actions
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Successfully completed the demerger of its Commercial Vehicles business, effective October 1, 2025, now listed as Tata Motors Limited (TMCV) on BSE and NSE from November 12, 2025.
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The proposed IVECO acquisition, announced on July 30, 2025, is progressing as planned with regulatory approvals underway for an expected April 2026 closure.
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Strengthened its logistics and technology ecosystem with an additional investment in Freight Tiger, reinforcing its focus on AI-led freight transformation.
Business Highlights
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CV wholesales grew to 96.8K units (+12%)
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Domestic volumes: +9% YoY
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Exports: +75% YoY
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H1 FY26 Domestic CV VAHAN market share stood at 35.3%, with strong positions across all segments:
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HGV+HMV: 47.2%
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MGV: 35.8%
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LGV: 28.6%
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Passenger: 36.5%
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Enhanced its product portfolio with new offerings including Ace Gold+ Diesel, Winger Plus, LPT 812, and LPO 1822.
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Signed an MoU with Green Energy Mobility Solutions to supply 100 Magna EV intercity coaches.
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Achieved rapid market traction with 1,300 units of Ace Pro EV billed within four months of launch.
Outlook
Tata Motors expects a strong H2 FY26 driven by festive demand, improving consumption, and the unfolding impact of GST reforms. Growth in infrastructure, construction, and mining is set to further drive CV demand. With a robust product pipeline and customer-focused strategy, the company aims to accelerate growth, enhance market share, and maintain strong margins, cash flows, and ROCE.
Leadership Commentary
Girish Wagh, MD & CEO, Tata Motors Ltd:
“Our debut as an independently listed entity marks a defining moment for Tata Motors Ltd. The strong Q2 performance highlights our accelerated momentum, driven by agile strategy, improved product availability, and strengthened market actions. With GST 2.0 and festive demand providing tailwinds, we expect continued traction across segments and remain committed to sustainable growth and our ‘Better Always’ promise.”
GV Ramanan, CFO, Tata Motors Ltd:
“Our Q2 performance reflects solid fundamentals, strong margins, and significantly improved ROCE. With our highest-ever H1 free cash flow and a disciplined financial approach, we are well-positioned to deliver long-term value as a newly listed entity.”
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