Tata Motors544569Earnings call transcript

Q2 FY27 call: 42% volume growth, steady margins, IVECO offer at EUR14.40 a share

Transcript of the Q2 FY27 earnings call held on 23 October 2026.

By ScoutQuest · Tue 27 Oct 2026, 7:48 PM IST · 2 min read

Wholesales: ~1.35 lakh units, up 42% YoY
Revenue: ₹23,900 crores, up 42%
EBITDA Margin: 11.7%

Quarter at a glance

The call walked through a quarter of broad-based volume growth and higher profit. Wholesales were ~1.35 lakh units, up 42% year-on-year, and revenue rose 42% to ₹23,900 crores. The main numbers discussed are standalone, including the joint operations with Tata Cummins; consolidated figures are presented separately.

Financial outcomes

EBITDA about ₹2,800 crores, up 31%, at a margin of 11.7%, down 90 basis points year-on-year but flat sequentially despite commodity inflation intensifying during the quarter.
EBIT ₹2,300 crores at a 9.7% margin, down 50 basis points year-on-year.
Profit before tax, before exceptional items, ₹2,700 crores, up 51% — absolute profit growth again outpaced volume growth.
Free cash flow ₹4,600 crores against ₹2,200 crores in the same quarter last year.
Net cash ₹11,300 crores as at 30 September, against ₹7,500 crores at March end and ₹7,100 crores at June end, after the dividend payout in Q1.

What drove the margin

A 590 basis point commodity headwind in variable cost was almost fully offset by volume and mix (₹1,159 crore), improved net realisation (₹1,017 crore), other cost savings (280 bps) and FX and other items (30 bps). Management said part of the working capital release in the quarter is timing-related and will partially reverse as payables normalise.

Market share and demand

H1 VAHAN market share 36.2%, up 110 basis points over the FY26 level.
Heavy commercial vehicles 55.7%, up 50 bps; CV passenger 41.1%, up 500 bps over FY26.
Industry offtake grew 28.4% year-on-year in Q2 while company volumes grew 30.5%.
EV volumes grew 143% year-on-year; small commercial vehicle EV retails crossed 4,400.

IVECO open offer

All required regulatory clearances were obtained, completing the condition to launch the offer. The acceptance period opened on 7 September 2026 and closes on 26 October 2026.
The offer price was raised on 9 October from EUR14.10 to EUR14.40 per share, described as a goodwill gesture for the slight delay, and declared the best and final offer.
About 35% of shares had been tendered as of 22 October.
Management said it remains confident of a successful completion, noting tenders typically bunch in the final 24 to 48 hours. Subject to offer conditions being met, settlement is expected on 30 October 2026, when the offer price for tendered shares will be paid.

Guidance and outlook

Investment spending was about 2.5% of revenue, within the guided range of 2% to 4%, with spending continuing in line with plan.
The stated focus in H2 is to build on the market share gains made in H1.
The demand environment entering H2 is described as healthy, supported by GDP growth, freight availability, stable fleet utilisation, infrastructure activity and replacement demand; the structural outlook for the CV industry is described as positive.
Consolidated net cash was ₹15,900 crores as at 30 September against ₹13,700 crores at March end, which management said puts the company in a very strong liquidity position going into H2 FY27.

Also from Tata Motors

Analyst positive on Tata Motors CV in medium to long term, with target of 500 plus, but cautious short term

28 Oct 2026

Tata Motors Ltd press release

27 Oct 2026

Deck cleared for Tata Motors to acquire Italian truck maker Iveco after its open offer got subscribed more than the required 80%

27 Oct 2026

All Tata Motors stories