Q2 2026 Tata Motors Passenger Vehicles Ltd Earnings Call Transcript
Key Points
- Tata Motors Passenger Vehicles Ltd (BOM:500570) reported a 15% year-on-year revenue growth in the India business, showcasing strong domestic performance.
- The company achieved record volumes in September and October, with over 60,000 units sold in consecutive months, indicating robust demand.
- Market share improved significantly to 12.8% for the quarter, with further gains during the festive months reaching up to 14%.
- Electric vehicle (EV) penetration increased from 12% to 17%, with EVs and CNG accounting for 45% of the product mix, highlighting a successful shift towards alternative powertrains.
- The company maintained a strong cash flow position with 1,600 crores of free cash flow generated in the quarter, despite increased investments in the EV segment.
- The company faced a significant production loss in September due to a cyber incident, resulting in a 24% drop in JLR revenues and a PBT loss of 55,000 crores for the quarter.
- There was an exceptional loss of 2,600 crores related to the cyber incident and a voluntary redundancy program, impacting financial performance.
- Net auto debt increased to 20,000 crores from a net cash position at the end of the last fiscal year, primarily due to JLR.
- The company experienced a decline in EBIT margins to 6.4%, down by almost 2% year-on-year, due to higher commodity costs and adverse pricing.
- Global demand challenges persist, with geopolitical tensions and supply chain disruptions affecting the industry, leading to elevated VME levels and impacting margins.
(technical difficulty) '26 earnings call. Today we have with us Mr. PB Balaji, CFO Tata Motors Passenger Vehicles Group; Mr. Shailesh Chandra, MD and CEO of Tata Motors Passenger Vehicles Limited; Mr. (technical difficulty)
(technical difficulty) CD merger, a few hygiene accounting related matters to get out of the way. Our segment reporting will now comprise of automotive segments and others. The automotive segment will now comprise of JR and Tata passenger vehicles business. Other than CV segment moving out, there is no change there.
Others will comprise the rest, the financially material ones being Tata Technologies and Tata Motors Holdings Limited, Singapore.
Next slide, please. For the purpose of statutory reporting, the published income statement has been reclassed to comprise only the TMPV group for prior periods for a like for like comparison. However, the balance sheet for prior periods will include assets and liabilities and hence not comparable.
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