Tata Motors CV Business Faces Rs. 1,021 Crore Q2 FY26 Loss After Investment Devaluation

Tata Motors' newly listed CV unit posted a net loss of ₹1,021 crore for Q2 FY26 ending September 30, 2025. This, when compared to the same quarter last year, we see a profit of ₹643 crore.

Operating income for the firm now increased to ₹16,861 crore, up 8.6% from ₹15,518 crore for Q2 FY25. However, the reported loss primarily was the result of a one-time investment impairment of ₹2,355 crore in different subsidiaries and associates, along with mark-to-market losses valuing close to ₹2,000 crore on the recently listed Tata Capital holdings.

Excluding these exceptions, the operational performance of the CV business unit has improved. Quarterly EBITDA came at ₹2,200 crore, with margins expanding by 150 bps year-on-year to 12.2%. EBIT margin increased to 9.8%, which is up 200 bps. The profit before tax excluding exceptional items- PBT bei went up to ₹1,694 crore, which is ₹469 crore more than last year.

Tata Motors also generated a robust free cash flow of ₹2,211 crore in Q2, more than doubling last year's ₹984 crore. For H1 FY26, despite a weak Q1, free cash flow was ₹417 crore, marking the highest-ever half-year FCF for the CV unit.

Commercial vehicle wholesales stood at 96,800 units, up 12% year-on-year. Domestic sales increased 9%, while exports jumped 75%. The company sustained a 35.3% domestic market share in H1 FY26, as per VAHAN data. Segment-wise, the market share was 47.2% in heavy goods, 35.8% in medium goods, 28.6% in light goods, and 36.5% in passenger carriers.

On the financial front, as of September 30, 2025, Tata Motors remained net cash positive at ₹1,200 crore, including TMF Holdings' gross debt offset by the market value of its Tata Capital investments. The domestic business net debt stood at ₹600 crore.

In all, Q2 FY26 results show a headline loss owing to investment devaluation, but operational fundamentals remain strong, featuring higher EBITDA margins, improved cash flow, and increased market share. 

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