Tata Motors PV Posts Net Loss of Rs 5,531 Crore in Q2 Even as Revenue Rises

Q2 Financial Results

Tata Motors Passenger Vehicles reported a consolidated net loss of Rs 5,531 crore for the second quarter of financial year 2027, driven by exceptional charges of Rs 6,738 crore. These charges included employee separation costs of Rs 3,776 crore and asset impairment charges of Rs 2,856 crore. Despite the bottom-line loss, consolidated revenue from operations grew 34% year-on-year to Rs 96,920 crore. The EBITDA margin improved by 630 basis points to 6.2% during the quarter.

Segment Performance

Luxury brand Jaguar Land Rover posted exceptional items of 530 million pounds, linked to restructuring, employee separation costs and the write-down of intangible assets. JLR revenue increased 20.3% to 5,894 million pounds, and its EBITDA margin expanded 820 basis points to 6.6%. Meanwhile, the domestic passenger vehicle business saw revenue rise 50.9% to Rs 20,423 crore, though its EBITDA margin slipped 180 basis points to 4%. CFO Dhiman Gupta noted that the domestic unit built on growth momentum while JLR delivered resilient volumes despite market challenges.

Brokerage Outlook

Brokerages remain divided on the stock, which has fallen nearly 22% in 2026 and closed 3.37% lower at Rs 287 on the BSE. Motilal Oswal maintained a 'Sell' rating with a target price of Rs 240, citing headwinds such as weak demand in China, higher debt, and elevated commodity prices. In contrast, Nuvama Institutional Equities kept a 'Buy' rating with a revised target price of Rs 360, pointing to expected revenue and EBITDA growth across both the domestic and JLR segments through FY29.

Context

Major automakers often experience volatility in quarterly earnings due to restructuring expenses, shifting commodity prices, and fluctuating demand in key international markets like China. Financial brokerages routinely review target prices and ratings following earnings reports to guide investors through changing market conditions.