Tata Motors Commercial Vehicles (CV) segment delivered an impressive set of Q2 FY26 results, driven by strong volume growth, disciplined financial management, and a clear focus on profitable expansion. The company recorded a 12% year-on-year increase in volumes, supported by improved market activity and customer demand during the festive season and the rollout of GST 2.0 reforms.

Revenues for Q2 FY26 stood at ₹18,400 crore, marking a 6.6% growth compared to last year. EBITDA margins improved significantly to 12.2%, an expansion of 150 basis points, while EBIT margin rose to 9.8%, up by 200 basis points. These improvements were driven by higher volumes, favorable realizations, and tight cost controls. Profit Before Tax (before exceptional items) for the quarter was ₹1,700 crore.

The company continued its strong cash flow performance. Free Cash Flow for Q2 was ₹2,200 crore, marking one of the highest levels in recent quarters. Despite a seasonally weaker first quarter, Tata Motors delivered ₹417 crore FCF in H1 FY26 — the highest-ever first-half FCF for the business. ROCE improved substantially to 45%, compared to 37% in the same quarter last year. As of September 30, 2025, net debt for the domestic business stood at just ₹600 crore.

At the consolidated level, revenues came in at ₹18,600 crore, up 6% year-on-year. Consolidated EBITDA margin reached 11.4%, including due diligence expenses related to recent acquisitions, and the EBIT margin stood at 8.8%. However, consolidated profitability was impacted by mark-to-market losses on recently listed investments in Tata Capital, amounting to approximately ₹2,000 crore. As a result, PBT before exceptional items was at a loss of ₹600 crore, and net income stood at a loss of ₹900 crore. Despite this, the company remained net cash positive at ₹1,200 crore, factoring in TMF Holdings' debt and investment value in Tata Capital.

Corporate actions highlighted a transformative phase for the company. Tata Motors successfully completed the demerger of its Commercial Vehicles business, with the scheme becoming effective on October 1, 2025. The newly formed entity, Tata Motors Limited (Commercial Vehicles), was listed on both BSE and NSE on November 12, 2025 under the ticker TMCV. The proposed acquisition of IVECO, announced on July 30, 2025, continues to progress as per schedule, with regulatory approvals underway for an expected closure in April 2026.

As part of its strategy to pursue AI-led transformation in logistics, Tata Motors expanded its investment in Freight Tiger by an additional ₹134 crore, taking the total investment to ₹284 crore.

Operational performance remained strong during the quarter. Total CV wholesales stood at 96,800 units, representing a 12% increase. Domestic volumes grew by 9% year-on-year, while exports surged by 75%. The company maintained a steady 35.3% market share in the VAHAN domestic CV segment in H1 FY26, with segment-wise shares of 47.2% in HGV+HMV, 35.8% in MGV, 28.6% in LGV, and 36.5% in passenger carriers.

The company passed on the complete benefit of the GST reduction to customers through price reductions across models. The product portfolio was strengthened through launches such as Ace Gold+ Diesel, Winger Plus, LPT 812, and LPO 1822. A significant milestone was achieved with 1,300 units of Ace Pro EV billed within four months of its launch. Tata Motors also signed an MoU with Green Energy Mobility Solutions to supply 100 Magna EV intercity coaches.

Looking ahead, Tata Motors expects a strong second half for FY26 supported by festive season demand, improving consumption patterns, and the full impact of GST reforms. The company projects increased momentum in construction, infrastructure, and mining sectors, which are key drivers of commercial vehicle demand. With a robust pipeline of new launches and an enhanced, customer-centric product portfolio, the company aims to sustain market share gains while maintaining its focus on profitable growth.

Managing Director and CEO, Girish Wagh, said that the listing of Tata Motors Ltd (CV business) on November 12, 2025 marks a historic milestone. He highlighted the company’s agile strategy and strong performance driven by 12% year-on-year volume growth. He added that the business is well-positioned to benefit from sectoral tailwinds in H2 FY26 and will continue to focus on sustainable growth under its promise of "Better Always".

CFO GV Ramanan emphasized that the company delivered strong double-digit EBITDA margins and a 45% ROCE in Q2 FY26. He noted that the highest-ever H1 FCF reflects the business’s improved financial health and commitment to long-term value creation for stakeholders.

With strong fundamentals, a strategic growth roadmap, and a newly listed independent structure, Tata Motors Commercial Vehicles enters the second half of FY26 with solid momentum and heightened expectations from the market.

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