Tata Motors Limited reported strong financial and volume growth in the second quarter of FY27, with standalone revenue increasing 42% year-on-year to ₹23,930 crore and total wholesales rising 42% to 135,100 units. The company generated free cash flow of ₹4,606 crore during the quarter, strengthening its net cash position to ₹11,300 crore as of September 30, 2026.
For Q2 FY27, standalone EBITDA stood at ₹2,800 crore, up 31% year-on-year, while the EBITDA margin was 11.7%, down 90 basis points. Profit before tax before exceptional items rose 51% to ₹2,700 crore and profit after tax reached ₹2,100 crore.
The company said operating leverage, disciplined pricing actions and rigorous cost-efficiency measures helped partially offset the impact of rising commodity costs, particularly steel and rubber. Its EBITDA margin was maintained sequentially compared with Q1 FY27 despite the cost pressures.
Auto return on capital employed (ROCE) stood at 65%, compared with 68% in the previous quarter.
Consolidated Revenue Rises 36%
On a consolidated basis, Tata Motors recorded revenue of ₹25,338 crores in Q2 FY27, up 36% year-on-year. EBITDA increased 31% to ₹2,800 crores, while the EBITDA margin stood at 10.9%, down 40 basis points.
Consolidated profit before tax before exceptional items was ₹1,800 crores, compared with a substantially lower base in the year-ago period, representing growth of 423%. Profit after tax increased 244% to ₹1,300 crore.
The company attributed the improvement in consolidated profit after tax partly to lower mark-to-market losses on investments in Tata Capital Limited. Its consolidated net cash position stood at ₹15,900 crore at the end of September 2026.
Wholesales Climb 42% to 135,100 Units
Tata Motors reported total wholesales of 135,100 units during Q2 FY27, an increase of 42% year-on-year. Domestic volumes rose 30%, while exports grew 177%.
The company’s overall domestic commercial vehicle VAHAN market share for the first half of FY27 stood at 36.2%, an increase of 110 basis points compared with FY26.
Category-wise market share for H1 FY27 stood at 55.7% in heavy commercial vehicles (HCV), 36.3% in intermediate and light medium commercial vehicles (ILMCV), 27.6% in small commercial vehicles and pickup vehicles (SCV PU), and 41.1% in commercial passenger vehicles.
During the quarter, Tata Motors showcased its next-generation passenger mobility solutions at Prawaas 5.0 and introduced its Ultra Prime and Starbus Prime ranges. It also presented its next-generation aggregates portfolio at Bauma CONEXPO India 2026.
The company was crowned the “Best Truck of the Year” award at the Logistics & Transport Award 2026 in the UAE. Other business developments included a memorandum of understanding with Drivn to offer leasing and financing solutions for electric commercial vehicles, a collaboration with Petronas to pilot a used-oil recycling model, and a partnership with Welspun Renewable Energy Private Limited to develop an 86 MW wind-solar hybrid project.
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Iveco Transaction Moves Towards Completion
Tata Motors also provided an update on the Iveco transaction. Following receipt of the required regulatory approvals, the tender offer has commenced and is scheduled to remain open for acceptance until October 26, 2026.
At Iveco’s extraordinary general meeting held on October 16, shareholders approved all proposed resolutions. Subject to successful completion of the tender offer, settlement is scheduled for October 30, 2026.
The company said it was progressing towards completion within the indicated timeline and preparing for consolidation from the following quarter. Its stated priorities include integration, pursuing strategic opportunities and creating long-term value.
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Management Sees Continued Growth Opportunities
Girish Wagh, MD & CEO, Tata Motors Ltd. said: “Q2 FY27 marked another strong quarter in our journey of consistent, profitable growth. Wholesale volumes grew 42%, with broad-based growth across segments, reflecting healthy underlying demand and disciplined execution. With H1FY27 volumes up 35%, we remain well positioned for a robust FY27, even as growth rates are expected to moderate in the second half against a higher base. Core macroeconomic indicators, sustained infrastructure activity and stable fleet utilisation continue to support freight demand, while interest rates, diesel prices and the broader economic environment remain key monitorables. Commodity cost pressures persisted through the first half and remain a headwind. Against this backdrop, we will stay focused on operational excellence, rigorous cost management, enhancing our customer value proposition and advancing our future-ready portfolio. Our priority remains to deliver sustainable, profitable growth and create enduring value for all stakeholders.”
GV Ramanan, CFO, Tata Motors Ltd. said: “Q2 FY27 delivered strong financial performance, with revenues growing 42% and EBITDA increasing 31%, supported by robust operating performance and continued capital discipline. Strong free cash flow generation of ₹4.6K crore further strengthened our balance sheet, taking our net cash position to ₹11.3K crore. Despite significant commodity cost pressures, particularly in steel and rubber, we maintained margins sequentially through rigorous cost management, operating efficiencies and calibrated pricing actions.
On the Iveco transaction, we are progressing steadily towards completion, within the indicated timeline of end October. As we prepare for consolidation from next quarter, our priorities are clear: seamless integration, unlocking strategic opportunities and creating sustained value for the long term.”
