Tata Motors Limited reported strong financial and operational performance for the second quarter of FY27, supported by higher sales volumes, operating efficiencies and disciplined cost management. The company recorded standalone revenue of ₹23,900 crore, up 42% year-on-year (YoY), while EBITDA increased 31% to ₹2,800 crore. EBITDA margin stood at 11.7%, declining 90 basis points YoY, while remaining stable sequentially despite significant commodity cost pressures.
Standalone profit before tax and exceptional items (PBT bei) rose 51% to ₹2,700 crore, while profit after tax (PAT) stood at ₹2,100 crore. Free cash flow for the quarter reached ₹4,600 crore, an improvement of ₹2,400 crore, strengthening the company’s net cash position to ₹11,300 crore as of September 30, 2026. Automotive return on capital employed (ROCE) stood at 65%, compared with 68% in Q1 FY27.
On a consolidated basis, revenue grew 36% YoY to ₹25,300 crore, while EBITDA increased 31% to ₹2,800 crore. EBITDA margin stood at 10.9%, down 40 basis points. Consolidated PBT before exceptional items rose to ₹1,800 crore, representing 423% growth, while PAT increased 244% to ₹1,300 crore. The improvement in profitability was supported by lower mark-to-market losses on investments in Tata Capital Limited. The consolidated net cash position stood at ₹15,900 crore at the end of the quarter.
Total wholesale volumes for Q2 FY27 reached 135,100 units, registering 42% growth. Domestic volumes increased 30%, while exports surged 177% YoY. Tata Motors’ domestic commercial vehicle (CV) VAHAN market share for H1 FY27 stood at 36.2%, up 110 basis points from FY26. Category-wise market shares were 55.7% in heavy commercial vehicles, 36.3% in intermediate and light commercial vehicles, 27.6% in small commercial vehicles and pickup vehicles, and 41.1% in passenger commercial vehicles.
During the quarter, the company showcased next-generation passenger mobility solutions at Prawaas 5.0, introducing its Ultra Prime and Starbus Prime ranges. It also presented its next-generation aggregates portfolio at Bauma CONEXPO India 2026 and received the Best Truck of the Year award at the Logistics & Transport Award 2026 in the UAE.
Tata Motors signed a memorandum of understanding with Drivn to offer leasing and financing solutions for electric commercial vehicles, collaborated with Petronas to pilot a scalable used-oil recycling model, and partnered with Welspun Renewable Energy Private Limited to develop an 86 MW wind-solar hybrid project.
Commenting on the performance, Girish Wagh, Managing Director and Chief Executive Officer, Tata Motors Limited, said the quarter reflected consistent, profitable growth, supported by broad-based volume expansion and disciplined execution. He noted that infrastructure activity, stable fleet utilisation and favourable macroeconomic indicators continued to support freight demand, while commodity costs remained a challenge. The company will focus on operational excellence, cost management, customer value and its future-ready product portfolio to sustain profitable growth.
GV Ramanan, Chief Financial Officer, Tata Motors Limited, highlighted strong cash generation and capital discipline. He said that operating efficiencies, cost management and calibrated pricing actions helped maintain margins sequentially despite higher steel and rubber costs.
On the proposed Iveco transaction, the company confirmed that the tender offer had commenced following receipt of regulatory approvals and would remain open until October 26, 2026. Iveco shareholders approved all proposed resolutions at an extraordinary general meeting held on October 16. Subject to successful completion of the tender offer, settlement is scheduled for October 30, 2026. Tata Motors said its priorities ahead of the planned consolidation include seamless integration, pursuing strategic opportunities and creating long-term stakeholder value.
