Tata Motors PV Q2 Results: Net loss at ₹5,531 crore on JLR restructuring costs, asset impairment

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Tata Motors PV Q2 Results: Net loss at ₹5,531 crore on JLR restructuring costs, asset impairment
- Published OnNov 13, 2026 | 16:45 IST
- Last Updated OnNov 13, 2026 | 18:00 IST
Tata Motors PV slipped into a net loss due to heavy restructuring costs and asset impairments at Jaguar Land Rover, even as robust domestic demand propelled revenue higher. JLR has slashed its annual margin outlook amid rising geopolitical headwinds. Will new luxury electric vehicle rollouts help stabilize overseas profitability?
Tata Motors Passenger Vehicles Ltd (Tata Motors PV) on Friday (November 13) reported a consolidated net loss of ₹5,531 crore for the second quarter of FY27, compared with a net profit of ₹76,170 crore in the corresponding quarter last year.
The company reported exceptional items worth ₹6,738 crore during the September quarter, compared with ₹2,608 crore in Q2 FY26.
Revenue from operations increased 34% year-on-year to ₹96,920 crore in Q2 FY27, compared with ₹72,349 crore in the year-ago period. However, the revenue figure was below the CNBC-TV18 poll estimate of ₹1 lakh crore.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at ₹4,866 crore, compared with an EBITDA loss of ₹1,404 crore in the corresponding quarter last year. However, the figure missed the CNBC-TV18 poll estimate of ₹7,354 crore.
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Consolidated profit before tax and exceptional items (PBT before exceptional items) stood at ₹400 crore, compared with a year-ago improvement of ₹5,900 crore.
Exceptional items worth ₹6,700 crore during the quarter primarily comprised provisions towards employee separation costs of ₹3,800 crore and impairment of assets worth ₹2,900 crore. This resulted in a consolidated loss before tax of ₹6,300 crore. Net loss for the quarter stood at ₹5,500 crore after recognition of a deferred tax asset.
The company's consolidated earnings before interest and tax (EBIT) margin stood at 1.1%, up 790 basis points year-on-year. The year-on-year improvement in margins primarily reflected the recovery from the cyber incident at Jaguar Land Rover (JLR) during the corresponding period last year. However, sequential margins were affected by adverse product mix and continuing commodity cost pressures.
Consolidated free cash flow (FCF) was negative at ₹6,300 crore during the quarter, compared with the year-ago period. Net debt stood at ₹50,800 crore as of September 30, 2026.
Dhiman Gupta, Chief Financial Officer, TMPVL said, "In Q2 FY27, TMPV continued to build on its strong momentum in the domestic business, while JLR delivered resilient volumes despite global market-specific challenges and wind-down of previous Jaguar models.
However, adverse mix and persistent commodity pressures weighed on margins. Both businesses remain fundamentally strong, and we stay focused on executing our medium-term priorities: driving growth through new launches, accelerating cost reductions and improving cash generation."
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Jaguar Land Rover Performance
JLR reported revenue of £5.9 billion in Q2 FY27, registering 20.3% year-on-year growth. Revenue for the first half of FY27 stood at £11.9 billion, up 3.2% year-on-year. Wholesale volumes increased sequentially in the UK and overseas markets, offsetting reductions in China and the Middle East. Volumes also improved significantly year-on-year, reflecting the recovery from last year's cyber incident.
JLR's EBITDA margin stood at 6.6%, improving 820 basis points year-on-year, while its EBIT margin was 1.1%, up 970 basis points. Profit before tax and exceptional items stood at £6 million for Q2 FY27 and £115 million for H1 FY27, compared with losses of £485 million and £134 million, respectively, in the corresponding periods last year.
JLR's adjusted EBIT margin stood at 1.1% for the quarter and 2% for the first half. Exceptional items of £530 million during the quarter were related to restructuring activities, including employee separation costs, the write-down of intangible assets under development and the write-down of other assets.
Free cash outflow for the quarter stood at £540 million, while the closing cash balance was £1.8 billion. Total liquidity as of September 30, 2026, stood at £6 billion. This included an undrawn revolving credit facility (RCF) of £1.7 billion, an undrawn UK Export Finance (UKEF)-guaranteed commercial loan of £1.5 billion and a new syndicated term loan of £1 billion signed on September 29, 2026.
In view of continuing market challenges, geopolitical risks and exceptional costs recognised during the quarter, JLR revised its full-year FY27 guidance. It now expects an adjusted EBIT margin in the range of 2-3% and free cash outflow of approximately £1.25 billion.
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The company said JLR remains positioned to address continuing geopolitical, inflationary and regulatory challenges, supported by its previously announced growth objectives and recent product launches.
PB Balaji, Chief Executive Officer, said, "JLR delivered positive operating profits in the second quarter and first half of the financial year, despite ongoing global challenges.
We launched three new products: Range Rover Electric, Range Rover Sport Electric and the show-stopping Jaguar Type 01 at a world premiere in New York. With the proposed arrival of Range Rover GT and a new electric Defender product in the new year, we are entering a phase of exciting product launches.
This, together with our growth plans for the US and disciplined execution of the Enterprise Missions to reduce our breakeven volumes to 300k units, positions us well to deliver consistent, cash-accretive growth in the coming years. I would like to thank all our people, supply chain and retail partners for their continued support."
JLR Unveils Three Luxury Electric Vehicles
JLR unveiled three new luxury electric vehicles: Range Rover Electric, Range Rover Sport Electric and Jaguar Type 01. All three models are being built in Solihull, UK, with deliveries scheduled to begin in early 2027.
The Range Rover Electric and Range Rover Sport Electric received positive reviews from the media for their refinement and capability. The Jaguar Type 01 made its world premiere in New York, showcasing its design and engineering.
Tata Passenger Vehicles Performance
Tata Passenger Vehicles (Tata PV) recorded its highest-ever quarterly revenue of ₹20,400 crore in Q2 FY27, registering 51% year-on-year growth. Vehicle volumes increased 40% year-on-year, outperforming the industry, supported by demand across its portfolio.
Electric vehicle (EV) volumes grew 90% year-on-year, contributing to a 380-basis-point sequential improvement in market share. Tata PV's EBITDA margin stood at 4%, down 180 basis points year-on-year, while its EBIT margin was negative 0.3%, declining 50 basis points. The company said margins continued to face pressure from adverse commodity prices and foreign exchange movements.
PBT before exceptional items was at break-even during the quarter, compared with a profit of ₹200 crore in the year-ago period. Free cash flow was positive at ₹825 crore in Q2 FY27, taking the first-half figure to ₹1,945 crore. Tata PV's closing cash balance stood at ₹11,000 crore, while gross debt was ₹3,100 crore, resulting in net cash of ₹7,900 crore.
Tata PV Business and Product Updates
Tata PV unveiled Tata.Cars, its new consumer-facing global brand identity, along with the brand promise, "Nothing's Too Far". The company retained its second position in the domestic passenger vehicle market, with a Vahan market share of 14.3% in Q2 FY27.
Its EV Vahan market share stood at 43%, despite new entrants and increased competition. Alternative powertrains accounted for more than 50% of penetration during the quarter, with EV penetration at 23% and compressed natural gas (CNG) penetration at 28%.
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The company launched the all-new Tata Aeris, which received a strong market response, and introduced several product interventions, including the Curvv Series X, Sierra Legend Series and Sierra #Dark edition. It also launched the Tata Osprey, known internationally as the Tata Nexon, in South Africa.
Tata PV signed a memorandum of understanding (MoU) to provide Stellantis access to its advanced product technology and vehicle architecture for global products. It also extended its Battery-as-a-Service (BaaS) offering across its entire EV portfolio. The company entered the third quarter of FY27 on a strong footing, recording its highest-ever monthly volumes of 75,400 units in October 2026.
Shares of Tata Motors Passenger Vehicles Ltd ended at ₹287.00, down by ₹10.00, or 3.37%, on the BSE.

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