Tata Motors’ commercial vehicle (CV) business swung to a consolidated net profit attributable to shareholders of ₹1,257 crore in the second quarter of financial year 2026-27 (Q2FY27)—against a loss of ₹867 crore in Q2FY26—aided by higher vehicle sales and a sharp reduction in fair-value losses on investments.
Shares of Tata Motors fell 4.41 per cent to close at ₹395.70 on the BSE on Friday. The results were announced after market hours.
Girish Wagh, managing director and chief executive officer (MD & CEO), Tata Motors, said the company expected further increases in commodity costs during Q3, particularly in metals and tyre rubber. It had already raised vehicle prices from October 1 and would decide on further pricing action for Q4 towards the end of the current quarter.
“We have been taking very calibrated price increases to ensure that the demand momentum is not derailed,” Wagh said during the earnings call.
The profit turnaround was also aided by lower mark-to-market losses on its Tata Capital investment compared with the year-ago quarter.
The company’s CV wholesales increased 42 per cent Y-o-Y to 135,100 units, with domestic volumes growing 30 per cent and exports surging 177 per cent. The CV segment reported a revenue of ₹25,004 crore, up 36.1 per cent from ₹18,370 crore a year earlier. Segment profit rose 31.7 per cent to ₹2,323 crore from ₹1,764 crore.
On the demand outlook, Wagh said the CV industry growth would moderate in the second half (H2) of FY27 because of a high base, but the industry was still expected to register double-digit growth for the full year.
“This is not a demand slowdown. The growth rate will come down because of the base effect,” he said, adding that Tata Motors intended to outperform industry growth in H2FY27, as it had done in H1.
Wagh said freight activity had recovered from the monsoon-related slowdown in July, supported by infrastructure execution, mining output, and festive inventory stocking. Fleet utilisation and transporter profitability had also improved during the quarter.
“Despite significant commodity cost pressures, particularly in steel and rubber, we maintained margins sequentially through rigorous cost management, operating efficiencies, and calibrated pricing actions,” said G V Ramanan, chief financial officer (CFO), Tata Motors.
Wagh said some supply-chain bottlenecks persisted despite suppliers increasing capacity to meet higher demand. The company expected these constraints to be addressed during Q3FY27.
The company generated standalone free cash flow (FCF) of ₹4,606 crore during the quarter, taking its standalone net cash position to ₹11,300 crore as of September 30. On a consolidated basis, net cash stood at ₹15,900 crore.
Tata Motors’ overall domestic CV market share, according to VAHAN data, stood at 36.2 per cent in H1FY27, an increase of 110 bps over H1FY26.
Tata Motors rules out further hike in Iveco offer
Tata Motors has ruled out any further increase in its €14.40-per-share offer for Italian CV manufacturer Iveco, despite objections from some minority shareholders, as the acquisition approaches its October 26 tender deadline.
“Best and final offer is absolutely the best and final offer. And it will remain at 14.40 euros per share,” Wagh said during the earnings call.
The company had raised its offer from €14.10 to €14.40 per share on October 9, citing a four-month delay in securing regulatory approvals. The revised offer values the transaction at approximately €3.91 billion.
At an extraordinary general meeting on October 16, Iveco shareholders approved all resolutions proposed by the board, including lowering the minimum tender acceptance threshold from 95 per cent to 80 per cent. The resolutions also covered restructuring and delisting arrangements to facilitate the acquisition.
Wagh said the company was confident of crossing the revised threshold despite demands from some shareholders for a higher price.
Ramanan said that once the 80 per cent threshold was crossed, the process of reaching full ownership could take another one to two months.
Settlement is scheduled for October 30, subject to successful completion of the offer. Tata Motors expects to begin consolidating Iveco’s financials from the following quarter.
