Tata Motors Ltd's Q2 FY27 numbers came in strong. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 23, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 23,930.00 Cr (+41.90% YoY) |
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| PAT (Q2) | Rs. 2,138.00 Cr |
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| EBITDA margin | 11.38% (-94 bps YoY) |
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| EPS (Q2) | Rs. 5.81 |
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| Market cap | Rs. 145,838.46 Cr |
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| CMP | Rs. 396.00 |
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Quarter Snapshot
Standalone revenue grew 41.9% YoY to Rs.23,930 cr on 42% volume growth with exports up 177%, while EBITDA margin held sequentially at 11.38% despite a 377 bps raw-material cost squeeze; margin ran below the mid-teens ambition, the only guidance shortfall. FCF of 12.72% of H1 revenue, debt/equity of 0.13x, and the Iveco settlement scheduled October 30 with consolidation from Q3 are the key forward catalysts. Watch the Others segment result down 75.6% YoY and H2 growth moderation against a high base.
Key Investment Insights
Key Positives
- Standalone revenue grew 41.9% YoY to Rs.23,930 cr on wholesales of 135.1K units (+42%), with exports up 177% YoY
- Standalone EBITDA grew 31.1% YoY to Rs.2,723 cr; PBT before exceptional items grew 51.4% YoY to Rs.2,660 cr
- EBITDA margin held sequentially at 11.38% vs 11.26% in Q1 despite a 377 bps YoY raw-material cost squeeze
- Automotive segment margin expanded to 8.91% from 8.55% YoY and from 8.33% in Q1
- H1 standalone FCF of Rs.5,502 cr (12.72% of revenue) exceeded the company's 7-9% band; CFO/PAT at 1.78x
- Debt/equity improved to 0.13 standalone / 0.19 consolidated; consolidated borrowings down to Rs.2,942 cr from Rs.4,817 cr at March; net cash Rs.15.9K cr consolidated
- Domestic CV VAHAN share at 36.2% in H1 FY27, up 110 bps vs FY26; EV volumes up 2.4x YoY
- Iveco acquisition on track: EGM approved October 16, settlement scheduled October 30, 2026, consolidation from Q3
Risk Factors
- Raw material ratio rose 377 bps YoY to 72.76% of revenue on steel and rubber inflation, compressing EBITDA margin 94 bps YoY to 11.38%
- EBITDA margin of 11.7% (management basis) ran below the previously stated mid-teens ambition
- Others segment result fell 75.6% YoY to Rs.21 cr with margin collapsing from 40.76% to 6.46%, with no disclosed driver
- Consolidated PAT halved QoQ to Rs.1,254 cr due to the Rs.708 cr Tata Capital FVTPL loss vs a Rs.1,135 cr Q1 gain
- Inventories up 50.81% and receivables up 33.04% since March, with the filing not decomposing demand vs channel fill
- Management warns growth rates are expected to moderate in H2 against a high base (Q3 FY26 115.2K, Q4 FY26 131.8K wholesales)