Tata Motors Q2 Results: TMCV’s First Earnings Post-Demerger Show Resilient Performance Despite Net Loss Of ₹867 Cr
Tata Motors Q2 Results: Tata Motors Q2 results mark the company’s first quarterly earnings after demerging the Commercial Vehicles (CV) business on 1 October 2025. The newly listed CV entity, now trading under the ticker TMCV, reported 6% revenue growth, stronger margins, and a sharp net loss due to mark-to-market adjustments.
Tata Motors Q2 results come at a time when Indian logistics demand is recovering and GST 2.0 reforms are reshaping commercial mobility.
How Do the Tata Motors Q2 Results Reflect Its First Post-Demerger Performance?
Tata Motors Q2 results (Commercial Vehicles business) posted a consolidated revenue of ₹18,585 crore, up 6% YoY, driven by stronger volumes, festive recovery, and improved availability across truck categories.
Key Financial Highlights – Q2 FY26
| Metric | Q2 FY26 | Q2 FY25 | YoY Change |
|---|---|---|---|
| Revenue from Operations | ₹18,585 crore | ₹17,535 crore | +6% |
| EBITDA Margin | 11.4% | 10.0% | +140 bps |
| EBIT Margin | 8.8% | 7.1% | +170 bps |
| Net Profit / (Loss) | ₹(867) crore | ₹498 crore | NA |
| PBT (before exceptional items) | ₹(600) crore | NA | NA |
| Net Cash Position | ₹1,200 crore | NA | NA |
The company reported a net loss of ₹867 crore, primarily because of ₹2,000 crore mark-to-market (MTM) losses on recently listed Tata Capital investments—an accounting impact rather than a business deterioration.
Management emphasised that core operations remain strong, with EBITDA expanding sharply.
What Drove TMCV Volumes and Market Share This Quarter?
The Commercial Vehicles segment witnessed a 12% YoY wholesale growth, powered by stronger fleet replacement, infrastructure demand, and pre-festive restocking.
TMCV Segment Performance – Q2 FY26
| Category | Q2 FY26 Growth |
|---|---|
| Total Wholesales | 96,800 units (+12%) |
| Domestic Volumes | +9% YoY |
| Exports | +75% YoY |
| HGV+HMV Market Share | 47.2% |
| MGV Market Share | 35.8% |
| LGV Market Share | 28.6% |
| Passenger CV Market Share | 36.5% |
The company also passed on the full GST 2.0 benefit to customers through price reductions, supporting retail demand.
New Launches in Q2
- Ace Gold+ Diesel
- Winger Plus
- LPT 812
- LPO 1822
- Ace Pro EV (1,300 units billed within 4 months)
Additionally, Tata Motors signed an MoU with Green Energy Mobility Solutions to supply 100 Magna EV intercity coaches, reaffirming its EV leadership in commercial mobility.
What Does the Demerger Mean for Tata Motors Going Forward?
Effective 1 October 2025, Tata Motors officially separated the CV business, which is now independently listed on BSE and NSE (Ticker: TMCV).
Key Developments After Demerger
| Strategic Move | Status |
|---|---|
| Demerger Effective Date | 1 Oct 2025 |
| Listing Date | 12 Nov 2025 |
| Ticker | TMCV |
| Proposed IVECO Acquisition | On track for Apr 2026 |
| Additional Investment in Freight Tiger | ₹134 crore (Total: ₹284 crore) |
The TMCV’s listing debut was strong, with the stock priced at ₹335 on NSE, a 28.5% premium over its discovered price—reflecting investor confidence.
What Does Management Say About Tata Motors Q2 Results Performance?
CEO Girish Wagh shared several insights:
- Q2 FY26 reflects resilience and operational agility after demerger.
- GST 2.0 and festive season triggered a strong volume rebound.
- Focus remains on sustainable mobility, market activations, and customer-centric product improvements.
- H2 FY26 is expected to be stronger, driven by infra-led CV demand.
Conclusion: What Should Investors Take Away?
Tata Motors Q2 Results show a business in transition, yet one that remains fundamentally strong. Despite the headline net loss—driven entirely by accounting MTM adjustments—the core CV operations delivered:
- Stronger revenue & margins
- Double-digit volume growth
- Healthier product mix
- Solid market share across categories
With the demerger now complete and the CV business operating as an independent listed entity, Tata Motors is positioned for a focused, agile, and growth-oriented FY26. Infrastructure expansion, GST reforms, and EV shift will be the major themes to track.
Investors and traders on Dalal Street will closely watch the TMPV Q2 results event, which will be held on November 14.
Click Here to know more market & IPO related news and updates.
Disclaimer: The views and investment insights provided here are based on publicly available information and do not constitute financial advice. Readers are advised to conduct their own research or consult certified financial experts before making investment decisions.
