Tata Motors Passenger Vehicles Shares Fall 7% on Q2FY26 Results

On Monday, the Tata Motors Passenger Vehicles (TMPV) share price fell 7.2%, touching a day’s low price of Rs 363 on NSE after the company posted huge profits in Q2FY26, despite strong volume growth, improved operational metrics for the passenger vehicle segment, and headwinds in other divisions. The quarterly results reflected both market momentum and strategic developments, including the impact of one-time gains resulting from the demerger of the company’s commercial vehicle business.

Q2FY26 Financial Results

TMPV's consolidated net profit reached Rs 76,170 crore for Q2FY26, marking a massive surge year-on-year, primarily due to an exceptional gain of Rs 82,616 crore arising from the disposal of discontinued operations following the demerger. Revenue from operations dropped 14% to Rs 72,349 crore as compared to Rs 83,656 crore in Q2FY25, reflecting the exclusion of the CV segment and the global impact of operational disruptions, including a cyber incident at JLR that weighed on group performance.

Segment-wise Performance

In Q2FY26, TMPV generated Rs 13,529 crore in revenue with an EBIT margin of 0.2%, driven by strong demand for new launches, EVs, and CNG models, which together accounted for over 45% of volumes. The domestic business maintained sector leadership despite input cost pressures and selective discounting, while the EBIT margin reflected tight cost control.

Jaguar Land Rover’s revenue stood at Rs 57,877 crores, but the EBIT margin slipped to -8.6% due to a cyber incident. TMPV’s resilient execution contrasted with JLR’s temporary setback, highlighting robust momentum in India alongside near-term volatility overseas.

Management Commentary

Group CFO PB Balaji acknowledged the quarter's challenges, notably the negative impact of the cyber incident at JLR, but expressed confidence in TMPV's domestic performance and strategy. The management committed to stabilising production, enhancing supply chain resilience, and executing brand-led demand initiatives. CEO Shailesh Chandra highlighted robust festive demand, a promising pipeline, and continued EV leadership as key strengths supporting future prospects.

In summary, Tata Motors Passenger Vehicles emerged from Q2FY26 bolstered by the demerger's exceptional gain but also demonstrated strong domestic execution with record volume growth, market share expansion in EVs, and improving unit economics, positioning it well for ongoing sectoral leadership and outperformance amid persistent industry headwinds.