On October 1, 2025, Tata Motors completed its long-awaited demerger, splitting itself into two distinct listed units—Tata Motors Passenger Vehicles (TMPV) and Tata Motors Commercial Vehicles (TMCV). TMPV now oversees the passenger car and Jaguar Land Rover (JLR) businesses, whereas TMCV manages the commercial trucks, buses, and related operations. This move was designed to unlock shareholder value and help each division focus on sector-specific strategies for growth.
Q2 FY26 Results: Losses in Both Units
Tata Motors Commercial Vehicles (TMCV)
- Net Loss: TMCV posted a consolidated net loss of Rs 867 crore for the July–September 2025 quarter, compared to a net profit of Rs 498 crore for the same period last year.
- Reason for Loss: The primary driver was mark-to-market losses of around Rs 2,000 crore on recently listed investments in Tata Capital, despite core business growth.
- Revenue: Operations brought in Rs 18,585 crore, up 6% year-on-year, indicating underlying business resilience.
- Operational Metrics: TMCV reported a 12% year-on-year increase in wholesales to 96,800 units. Domestic CV sales grew 9%, with exports soaring by 75%.
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Tata Motors Passenger Vehicles (TMPV)
- Net Profit/Loss: TMPV reported a headline net profit of Rs 76,170 crore, but this figure is inflated by a one-time exceptional gain of Rs 82,616 crore from the demerger. The actual EBITDA result was a loss of Rs 1,043 crore, indicating operational weakness.
- Revenue: TMPV saw revenue decline by 13.5% year-on-year to Rs 72,349 crore.
- Impact of JLR: The PV unit struggled significantly as Jaguar Land Rover (JLR) faced prolonged production shutdowns due to a major cyberattack, impacting global sales and supply chains.
Factors Behind the Losses
- Mark-to-Market Losses: A large part of the CV unit’s loss is attributed to accounting adjustments on investments in Tata Capital after the latter’s market listing.
- Cyberattack on JLR: JLR’s UK plants suffered a major cyberattack, described as the most economically damaging in Britain’s automotive history, halting production and cutting wholesale volumes by 24%.
- Operational Headwinds: The PV unit’s operating loss reflects weak demand, disrupted production, and the one-off nature of reported profit due to the exceptional gain from demerger transactions.
Commercial Vehicles: Operational Resilience
Despite the loss, TMCV showed core business strength:
- Revenue grew 6% year-on-year.
- EBITDA margin improved by 150 basis points to 12.2%, aided by improved product availability and market activation.
- The company expects momentum to strengthen further in H2 FY26, leveraging infra push and ongoing demand recovery.
Management Commentary
Girish Wagh, MD & CEO of Tata Motors , stated that improved demand following GST 2.0 implementation and the festive season drove volume recovery, but financials were dragged down due to extraordinary mark-to-market effects and cyber-incident impacts.
Outlook for H2 FY26
- Both demerged entities aim to leverage independent board structures and capital allocation for focused execution.
- Near-term will remain volatile given legacy headwinds from cyberattacks and financial revaluations.
- Management expects demand from construction, infrastructure, and mining sectors to buoy CV sales, with optimism of improved operational profitability as external shocks fade.
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Conclusion
Tata Motors ‘s first post-demerger quarter was marred by non-core losses, but underlying business fundamentals—especially in the commercial vehicle arm—show signs of operational resilience. Investors will be watching how both new entities navigate recovery and unlock sustainable value in a rapidly changing automotive landscape.
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