Tata Motors CV Unit Posts Rs 867 Crore Loss, 6% Revenue Growth in Q2FY26

Tata Motors, now operating as the automaker's commercial vehicle division, on Thursday announced a consolidated net loss of ₹867 crore for the second quarter (Q2) of financial year 2026. The figure marks a significant reversal from the ₹498 crore net profit recorded during the equivalent quarter of the previous financial year. Company shares commenced trading yesterday following the completion of its separation from the passenger vehicle segment. 

The auto manufacturer attributed the reported losses to mark-to-market losses stemming from recently listed investments in Tata Capital.

Revenue Up 6% YoY Despite Challenges

The company's operational revenue increased six per cent year-on-year (YoY) to ₹18,585 crore during Q2 FY26, up from ₹17,535 crore reported in Q2 FY25. However, expenses surged more than 15 per cent YoY to ₹19,296 crore during the quarter under examination.

Strong H2 Forecast

Looking ahead, Tata Motors anticipates a strong second half for FY26 with the festive season underway, improving consumption, and the full impact of GST reforms yet to unfold. 

"Construction, infrastructure, and mining activities will gain momentum, further fuelling demand for trucks and tippers," the automaker said.

The company added that with a robust pipeline of upcoming launches, and a richer, more customer-aligned product portfolio, it is well-positioned to accelerate momentum and drive meaningful, broad-based growth and market share improvement across all segments. 

The business will continue its focus on profitable growth to deliver double digit EBITDA margin and robust cash flows along with high ROCE, it said.

"Yesterday, November 12, 2025, marked a historic milestone for Tata Motors Ltd as we successfully listed on both the BSE and NSE following the demerger and today, I'm pleased to share that we've reported strong Q2 FY26 results. Our financial results underscore a resilient performance, driven by a sound and agile business strategy," said Girish Wagh, MD & CEO, Tata Motors.

Demand Revival Across Segments

Wagh added that after a subdued start, the rollout of GST 2.0 reforms and the onset of the festive season catalysed a surge in demand across segments. "We recorded a 12% year-on-year volume growth, led by enhanced product availability, a refined pricing strategy, and intensified market activations," he said.

"Looking ahead to H2 FY26, we anticipate continued momentum from key demand drivers -- construction, infrastructure, and mining. These sectors are poised to fuel growth, and our focus will remain on driving sustainable performance and shaping the future of mobility, guided by our brand promise of 'Better Always'," he added.

CV Shares Debut With Strong Premium

The shares of Tata Motors' commercial vehicle (CV) business started trading at ₹335 per share on the NSE on 12 November, representing a premium exceeding 28.5 per cent from the discovered price. This officially completed the demerger of automaker Tata Motors.

The listing marks a significant corporate restructuring for one of India's largest automotive manufacturers, separating its commercial vehicle operations from its passenger car business to allow each division to pursue focused growth strategies.

Infrastructure Development Expected to Drive Commercial Vehicle Demand

The commercial vehicle manufacturer remains optimistic about sectoral tailwinds in the coming months. With government emphasis on infrastructure development and construction activity gathering pace, the company anticipates sustained demand for heavy commercial vehicles, trucks, and tippers across various industrial segments.

The separated entity aims to leverage its independent status to make more agile business decisions, tailor product offerings specifically for commercial customers, and potentially attract investors interested exclusively in the commercial vehicle market segment.