Tata Motors Ltd. reported a massive 200-fold jump in its consolidated net profit for the second quarter of the fiscal year 2025-26, driven by a significant one-time exceptional gain, even as revenue fell sharply during the period. The results mark the company’s first quarterly earnings since the demerger of its passenger vehicle and commercial vehicle divisions.
According to an exchange filing on Friday, the automaker posted a net profit of Rs 76,170 crore for the July–September quarter, compared to Rs 3,446 crore in the same quarter last year. The sharp surge was primarily supported by an exceptional gain of Rs 2,608 crore in the quarter. However, despite record profits, Tata Motors’ consolidated revenue declined 13.5 percent year-on-year to Rs 72,349 crore, compared to Rs 83,656 crore a year ago.
The downturn in performance was largely attributed to a cyber incident that hit Jaguar Land Rover (JLR), the company’s luxury vehicle arm, during the quarter. JLR’s revenue fell 24.3 percent, dragging overall margins. EBIT margins dropped by 1,370 basis points, prompting the company to revise its EBIT outlook for fiscal 2026 to a range between 0 and 2 percent. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) also swung into a loss of Rs 1,043 crore, compared to a profit of Rs 9,478 crore in the previous year.
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Domestically, Tata Motors PV maintained steady performance, with the company reporting recovery toward the end of the quarter as post-GST adjustments took effect. Its market share in vehicle registrations stood at 12.8 percent, while electric vehicles continued to be a bright spot, commanding a strong 41.4 percent Vahan market share. The company said it remains focused on enhancing production stability and strengthening supply chain resilience following the recent disruptions.
“Tata Motors has faced a challenging period, but we are confident of emerging stronger,” said P.B. Balaji, Group Chief Financial Officer of Tata Motors. “With the demerger now complete, both JLR and the domestic passenger vehicle businesses are well-positioned to leverage the growth opportunities within the evolving automotive industry.”
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