Tata Motors swings to Rs 1,254 crore Q2 profit on commercial vehicle demand

Tata Motors returned to profitability in the July-September quarter, posting a consolidated net profit of Rs 1,254 crore on the back of expanding commercial vehicle sales and steady infrastructure demand across the country.

The commercial vehicle manufacturer had posted a net loss a year earlier — reported as Rs 867 crore in company disclosures and Rs 561 crore by financial exchanges. The turnaround was helped by a lower mark-to-market loss on its investments in Tata Capital, alongside broad-based volume growth.

Revenue from operations increased by around 36% to 37% year-on-year, reaching between Rs 25,232 crore and Rs 25,338 crore. Total wholesale volumes jumped 42% to 135,100 units during the quarter, with domestic dispatches rising 30% and exports leaping 177%.

Market share gains across categories

India's sustained capital spending on highways, logistics networks and industrial projects provided strong tailwinds for commercial freight. According to official Vahan portal registration data cited by the company, Tata Motors expanded its overall domestic commercial vehicle market share to 36.2% across the first half of FY27, up 110 basis points.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 31%, though the EBITDA margin compressed by 40 basis points to 10.9% under the weight of higher commodity prices, particularly steel and rubber. Chief financial officer G.V. Ramanan said the company countered input costs through calibrated price increases, operating efficiencies and strict cost control.

Girish Wagh, managing director and chief executive of Tata Motors, credited steady macroeconomic indicators and stable fleet operations for sustaining freight movement. While acknowledging that volume growth rates may moderate in the second half of the fiscal year due to a higher base, Wagh maintained that the domestic commercial vehicle industry remains on course for double-digit expansion for the full financial year.

Iveco acquisition enters final stretch

Beyond domestic operations, Tata Motors is preparing to complete its €3.9 billion acquisition of Italian vehicle manufacturer Iveco Group, which will establish an expanded global manufacturing footprint for the Indian group.

To compensate shareholders following four months of regulatory scrutiny, Tata Motors raised its tender offer price from €14.10 to €14.40 per share. Iveco investors approved all required resolutions at an extraordinary general meeting on 16 October.

The voluntary tender offer closes on 26 October, aiming for an 80% threshold required to delist the Italian firm. While tendered acceptances stood at approximately 35% before the final days, Wagh noted that institutional tendering typically surges in the final 48 hours of an offer window. Financial settlement is scheduled for 30 October 2026, with operational consolidation slated to begin in the January-March quarter.