Tata Motors Swings Back to Profit in Q2 FY27 — Net Profit Rs 1,257 Crore as CV Revenue Jumps 36 Percent

Tata Motors Is Back in the Black

Tata Motors has reported a consolidated net profit of Rs 1,257 crore for the September quarter of FY27, a sharp turnaround from the Rs 867 crore loss a year earlier. Revenue rose 36.3 percent year-on-year to Rs 25,338 crore, driven by a strong rebound in commercial vehicle demand.

The company, which now houses the demerged commercial vehicle business, attributed the swing to higher vehicle sales and a much smaller mark-to-market loss on its investments in Tata Capital. The result was announced after market hours on Friday, and the stock had already slipped 4.41 percent to close at Rs 395.70 on the BSE ahead of the numbers.

Volume Growth Did the Heavy Lifting

Tata Motors sold 1,35,100 commercial vehicles in the quarter, an increase of about 42 percent over the year-ago period. Domestic volumes grew 30 percent, but the real surge came from exports, which jumped 177 percent. Commercial vehicle revenue rose 36.1 percent to Rs 25,004 crore, and segment profit climbed 31.7 percent to Rs 2,323 crore.

Metric (consolidated)	Q2 FY27	Q2 FY26	Change
Revenue from operations	Rs 25,338 crore	Rs 18,585 crore	+36.3%
Net profit	Rs 1,257 crore	Loss of Rs 867 crore	Turnaround
EBITDA	Rs 2,800 crore	Rs 2,113 crore	+31%
EBITDA margin	10.9%	11.3%	-40 bps
CV wholesales	1,35,100 units	95,100 units	+42%

The one blemish is profitability per rupee of sales. The EBITDA margin narrowed 40 basis points to 10.9 percent, which the company linked to rising commodity costs. Profit also fell 50.9 percent from the Rs 2,560 crore reported in the June quarter, largely because the first quarter had benefited from a favourable accounting adjustment.

A Stronger Balance Sheet

The company generated standalone free cash flow of Rs 4,606 crore during the quarter, taking its standalone net cash position to Rs 11,300 crore as of September 30. On a consolidated basis, net cash stood at Rs 15,900 crore. For the first half of FY27, revenue rose 28 percent to Rs 46,005 crore and net profit climbed to Rs 3,810 crore.

On the long-running Iveco acquisition, managing director and chief executive Girish Wagh described the revised offer of 14.40 euros a share as "last and final", ruling out a further increase. Iveco shareholders approved the resolutions on October 16, lowering the minimum acceptance threshold to 80 percent. The offer closes on October 26, with settlement expected on October 30. Keep an eye on our sales and results section for how the wider industry is performing.

What This Means for You

For a car buyer, this is a commercial vehicle story, but it matters indirectly. A profitable Tata Motors has more room to invest in the passenger car and electric vehicle programmes that share its engineering muscle. For investors, the headline is a clean swing to profit with rising exports, offset by thinner margins. The real test is whether the export momentum holds once the Iveco deal closes. See how Tata's cars and SUVs compare in our reviews section.

(Sources: Tata Motors Q2 FY27 results filed 23 October 2026; Business Standard, 23 October 2026; Moneycontrol, 23 October 2026; Business Today, 23 October 2026; The Economic Times, 23 October 2026. Image credits: Trucksindiawiki, CC0; Photohelp13, CC BY-SA 4.0; Shadman Samee, CC BY-SA 2.0, via Wikimedia Commons.)

::KEY_NUMBERS:: Net profit | Rs 1,257 crore Revenue | Rs 25,338 crore Revenue growth | +36.3% YoY CV wholesales | 1,35,100 units ::TLDR:: Tata Motors returned to profit with Rs 1,257 crore in Q2 FY27 Revenue rose 36 percent year-on-year to Rs 25,338 crore CV exports surged 177 percent Net cash stands at Rs 15,900 crore ::CHART:: type: bar title: Tata Motors quarterly revenue (Rs crore) labels: Sep 2025,Jun 2026,Sep 2026 values: 18585,20667,25338 source: Tata Motors Q2 FY27 results ::GLOSSARY:: EBITDA | earnings before interest, tax, depreciation and amortisation, a measure of operating profit Wholesales | vehicles sold by the factory to dealers, not retail sales Mark-to-market | valuing an investment at current market price, which can create paper gains or losses ::PROS:: Strong CV volume growth Exports nearly tripled Healthy net cash position H1 profit up sharply ::CONS:: Margin slipped 40 basis points Profit fell 51 percent quarter-on-quarter Commodity costs rising ::POLL:: Is Tata Motors' CV rebound sustainable into FY28? || Yes, exports will carry it || Only if margins recover || Too early to say ::SOURCES:: Tata Motors Q2 FY27 results; Business Standard; Moneycontrol; The Economic Times