Tata Motors PV swings to Rs 5,531 cr net loss in Q2 FY27
The company reported a profit before exceptional items and tax of Rs 403 crore during the quarter, compared with a loss of Rs 5,462 crore in Q2 FY26.
Exceptional items stood at Rs 6,738 crore during the quarter, primarily comprising provisions towards employee separation costs and impairment of assets amounting to Rs 3,776 crore and Rs 2,856 crore, respectively.
EBITDA margin improved by 630 basis points (bps) YoY to 6.2% during the quarter. The improvement was largely attributable to the recovery from the cyber incident that affected Jaguar Land Rover (JLR) in the corresponding period last year.
Looking ahead, the company identified global geopolitical developments, demand trends in the luxury vehicle segment, the pace of EV adoption and commodity costs as key monitorables. The domestic business will focus on sustaining industry-beating growth and improving margins through cost efficiencies and calibrated pricing actions.
For JLR, the near-term priorities include building sales momentum through new EV launches and advancing its Enterprise Missions plan, which aims to reduce breakeven volumes to 3 lakh units.
Dhiman Gupta, chief financial officer, TMPVL said: ?In Q2 FY27 TMPV continued to build on its strong momentum in the domestic business, while JLR delivered resilient volumes despite global market specific challenges and wind-down of previous Jaguar models. However, adverse mix and persistent commodity pressures weighed on margins. Both businesses remain fundamentally strong, and we stay focused on executing our medium-term priorities: driving growth through new launches, accelerating cost reductions and improving cash generation.?
The domestic passenger vehicle business delivered its highest-ever quarterly revenue of Rs 20,400 crore, registering 51% YoY growth. Volumes increased 40% YoY to over 2 lakh units, significantly outperforming industry growth. Electric vehicle (EV) volumes also registered robust growth of 90% YoY.
However, the domestic business's EBITDA margin contracted by 180 bps YoY to 4%, primarily due to adverse commodity prices and foreign exchange (FX) movements. The company continued to address margin pressures through calibrated pricing actions and focused cost-reduction initiatives.
Shailesh Chandra, managing director & CEO, Tata Motors Passenger Vehicles said: ?Q2 FY27 was another quarter of strong execution for Tata Motors PV, with record quarterly sales of 2 lakh units and industry beating growth of 40% YoY reflecting robust customer demand across our portfolio. We maintained our leadership in electric mobility, recording industry-beating growth of 90% YoY in EV sales. Building on the momentum of our Q1 launches, we further strengthened our portfolio with new launchings including the all-new Tata Aeris. We also unveiled our new customer-facing identity, TATA.CARS, reflecting the evolution of our brand in step with the aspirations of today?s Indian car buyer.?
Revenue from Jaguar Land Rover (JLR) stood at ?5.9 billion in Q2 FY27, marking a growth of 20.3% YoY. JLR's wholesale volumes improved significantly, reflecting a recovery from the cyber incident experienced in the corresponding period last year.
In view of prevailing market challenges, geopolitical risks and the exceptional costs recognised in the quarter, the company revised its full-year guidance, expects an adjusted EBIT margin of 2-3% and free cash outflow of approximately ?1.25 billion.
PB Balaji, chief executive officer, said: ?JLR delivered positive operating profits in the second quarter and first half of the financial year, despite ongoing global challenges. We launched three new products: Range Rover Electric, Range Rover Sport Electric and the show stopping Jaguar Type 01 at a world premiere in New York. With the proposed arrival of Range Rover GT and a new electric Defender product in the new year, we are entering a phase of exciting product launches. This, together with our growth plans for the US and disciplined execution of the Enterprise Missions to reduce our breakeven volumes to 3 lakh units, positions us well to deliver consistent, cash-accretive growth in the coming years.?
Tata Motors Passenger Vehicles (formerly Tata Motors) is one of India?s leading automobile manufacturers, offering a diverse portfolio of cars and SUVs renowned for their design, safety, and performance.
The counter declined 3.37% to settle at Rs 287 on the BSE.
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