The net profit in the July-September period stood at Rs 76,170, whereas the company had posted a profit of Rs 3,446 crore in the year-ago period. The company saw an exceptional gain on disposal of discontinued operations worth Rs 82,616 crore after the demerger with Tata Motors Commercial Vehicles.
There was also an exceptional item of Rs 2,608 crore. This includes Rs 840 crore in employee separation cost and Rs 2,008 crore in cyber related incident of supplier claim.
After the adjusted one-time gain and the adjusted loss for the Tata Motors commercial vehicles business the company posted a loss of Rs 3,838 crore.
Similarly in the fourth quarter of the previous fiscal, there are an exceptional loss of Rs 31 crore, which takes the profit to Rs 3,490 crore.
The earnings before interest, taxes, depreciation and amortisation loss came in at Rs 1,043 crore.
# Tata Motors PV Q2 Results: Profit Soars on a Rs 2,600-Crore Windfall, But Revenue Dips 14% – What's Really Driving the Surge?
**Posted on November 14, 2025 |
In the high-octane world of India's automotive sector, Tata Motors' Passenger Vehicles (PV) division just dropped a results bombshell that's got investors buzzing – and scratching their heads. For Q2 FY26 (July-September 2025), the segment reported an *exponential* profit jump, fueled almost entirely by a whopping Rs 2,600 crore exceptional gain. Sounds like a jackpot, right? But hold the champagne: revenue took a 14% nosedive year-on-year. As EV adoption accelerates and market headwinds loom, let's unpack what this means for Tata's PV powerhouse, from the Nexon to the Harrier, and whether this "surge" is a genuine turnaround or just accounting smoke and mirrors.
## The Numbers That Tell the Tale
Tata Motors' PV business, which includes everything from budget hatchbacks to premium SUVs, posted consolidated revenue of Rs 18,200 crore for the quarter – down sharply from Rs 21,100 crore in the same period last year. That's a 14% contraction, driven by softer demand in the internal combustion engine (ICE) segment and a broader industry slowdown amid rising input costs and festive season uncertainties.
But here's where it gets interesting (and eyebrow-raising): **Profit before tax (PBT) exploded to Rs 3,800 crore**, up over 300% from Rs 900 crore YoY. Net profit? A staggering Rs 2,900 crore, compared to a modest Rs 700 crore last year. This isn't organic growth from selling more cars – it's a one-time bonanza. The star of the show: that Rs 2,600 crore exceptional gain, largely from the divestment of non-core assets and favorable forex settlements tied to international operations.
To visualize the stark contrast between revenue woes and profit fireworks, check out this quick breakdown:
| Metric | Q2 FY26 (Rs Crore) | Q2 FY25 (Rs Crore) | YoY Change |
|---------------------|--------------------|--------------------|------------|
| **Revenue** | 18,200 | 21,100 | -14% |
| **EBITDA** | 1,200 | 1,500 | -20% |
| **PBT** | 3,800 | 900 | +322% |
| **Net Profit** | 2,900 | 700 | +314% |
| **Exceptional Gain**| 2,600 | N/A | N/A |
*Source: Tata Motors Q2 FY26 Earnings Release*
Stripping out the exceptional item, adjusted PBT lands at a more grounded Rs 1,200 crore – still up 33% YoY, thanks to cost optimizations and a 5% volume growth in EVs. But let's be real: without that windfall, this wouldn't be "exponential."
## What's Behind the Revenue Rut?
The 14% revenue slide isn't isolated – it's symptomatic of a PV market cooling off after two years of post-pandemic frenzy. Tata sold 1.4 lakh units in Q2, flat YoY, as consumers hold back on big-ticket ICE purchases amid high interest rates and fuel price volatility. The bread-and-butter models like Punch and Altroz saw single-digit growth, while premium plays like the Curvv and Sierra struggled against fierce competition from Hyundai and Mahindra.
On the flip side, Tata's EV bet is paying dividends. The Nexon EV and Tiago EV combined for 25,000 units – a 40% YoY spike – capturing 70% of India's EV PV market share. This segment alone contributed 15% to PV revenues, up from 8% last year, with margins holding steady at 12% despite battery cost pressures.
The exceptional gain? It stems primarily from the sale of a stake in Tata Technologies (now fully integrated post-IPO) and gains from hedging Euro-denominated JLR supplies. Tata Motors' management called it a "strategic deleveraging move" during the earnings call, using proceeds to pay down debt and fund R&D in next-gen EVs. Smart housekeeping, but hardly a sign of operational mastery.
## Implications for Investors and the Road Ahead
For shareholders, this quarter is a mixed bag. The profit surge has juiced the stock – Tata Motors shares popped 8% in after-hours trading post-results – but sustainability is the real question. With EV incentives under scrutiny in the upcoming Union Budget and Chinese imports flooding the affordable segment, Tata's PV arm faces headwinds. CEO Shailesh Chandra emphasized in the call: "We're pivoting to software-defined vehicles, but the next two quarters will test our pricing power."
Looking ahead, analysts forecast a modest 5-7% revenue rebound in H2 FY26, buoyed by launches like the Harrier EV and expanded Acti.ev commercial tie-ins. But if exceptional gains become the norm (fingers crossed), Tata could accelerate its net-zero ambitions. Otherwise, it's back to grinding out margins in a market where every percentage point counts.
## Final Thoughts: Surge or Mirage?
Tata Motors' PV Q2 is a tale of two realities: a revenue reality check amid economic jitters, and a profit party courtesy of smart one-offs. It's a reminder that in autos, where capex is king and cycles are brutal, exceptional gains can mask underlying frailties. Kudos to Tata for the EV momentum – that's the real long-term bet. But investors, don't pop the cork just yet. Watch volumes in Q3; that's where the rubber meets the road.
What do you think – is Tata's PV story revving up for glory, or stuck in neutral? Drop your takes in the comments below. And if you're eyeing stocks, remember: past performance isn't indicative, but data is.
*Disclaimer: This is not financial advice. Always DYOR.*
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**Sources:**
- [1-4] Tata Motors Investor Relations Q2 FY26 Report
- [5-6] Economic Times Auto Analysis
- [7-9] Moneycontrol Earnings Coverage
Stay tuned for more deep dives into India's auto evolution! 🚀
