Tata Motors Posts 5,531 Crore Rupee Loss Despite 33.9% Revenue Growth in Second Quarter
Key Facts
Tata Motors Passenger Vehicles reported a consolidated loss attributable to shareholders of 5,531 crore rupees for the quarter ended September 30, 2026, compared with a profit of 76,170 crore rupees a year earlier. The company announced its results after trading closed on Friday, November 13, with the loss coming despite a 33.9% rise in operating revenue to 96,920 crore rupees from 72,349 crore rupees. Analysts tracked by Bloomberg had estimated consolidated net profit of 1,811 crore rupees and revenue of 1 lakh crore rupees. The divergence between revenue growth and a shift to a loss highlights the impact of exceptional items and profitability pressures on the group’s business. The group comprises its domestic vehicle operations alongside Jaguar Land Rover, which also reported revenue growth during the quarter.
Exceptional charges recorded during the quarter totaled 6,738 crore rupees, mainly including employee separation costs and asset impairment, Business Standard reported. The charges came as operating revenue expanded compared with a year earlier, but did not prevent a loss attributable to shareholders. The comparison with last year’s profit also requires accounting for a large exceptional item in the prior period. The previous profit figure included a gain related to the demerger of the commercial vehicle business, making a direct comparison between the two results less indicative of the operating trend alone. The quarterly result therefore combines revenue growth, restructuring and asset impairment charges, and a different year-earlier comparison base.
At Jaguar Land Rover, quarterly revenue was 5.89 billion pounds, up 20.3% year on year, as wholesale volumes recovered in the U.K. and overseas markets. But the revenue improvement did not end profitability pressures, as lower volumes in China and the Middle East, alongside an unfavorable market and model mix, weighed on results. These factors put the business recovery against continued divergence in performance across markets and products. In this context, the company cut its forecast for Jaguar Land Rover’s adjusted earnings before interest and taxes margin in fiscal 2027 to 2–3% from 4%. It attributed the revision to market challenges, geopolitical risks and restructuring costs.
Jaguar Land Rover expects revenue of about 25 billion pounds in fiscal 2027, with free cash outflow of about 1.25 billion pounds. It is also targeting double-digit growth in underlying earnings in fiscal 2028. The outlook combines substantial expected revenue and cash outflow in the current fiscal year, followed by an earnings growth target in the next year. The cut in the adjusted margin forecast to 2–3% is the most prominent change in the fiscal 2027 guidance covered here. The company linked the revision to market challenges, geopolitical risks and restructuring costs, while giving revenue and cash flow forecasts for the same fiscal year.
Tata Motors Passenger Vehicles shares closed at 287.40 rupees on November 13, down 3.31% during the session, before the results were announced after trading hours. The share decline therefore preceded publication of the quarterly loss and does not reflect a post-announcement move. The market entered the session amid Jaguar Land Rover’s revised fiscal 2027 margin outlook, while the quarterly results showed domestic and global revenue growth alongside exceptional charges and profitability pressures. Friday’s share move should be read in light of the market close and subsequent announcement timing, rather than as a reaction in a later session to the published figures. The company’s forward operating outlook includes Jaguar Land Rover revenue for fiscal 2027 and a target for underlying earnings growth in fiscal 2028.