TMPV posted a 2,110% YoY net profit surge for Q2FY26, largely due to an Rs. 82,620-cr one-time gain.
JLR suffered production losses from a cyberattack, slashing revenue and prompting a downgrade of FY26 guidance.
Domestic PV and EV sales remain strong, with Nexon EV and compact SUVs leading demand recovery.
Tata Motors Passenger Vehicles (TMPV) reported a staggering 2,110% year-on-year surge in net profit for Q2FY26. Industry experts believe that a one-time exceptional gain from the carve-out of its commercial vehicle business might be the reason behind this. The company’s net profit jumped to Rs. 76,170 crore from Rs. 3,450 crore a year earlier, following a Rs. 82,620-crore notional gain. TMPV actually posted a net loss of Rs. 6,368 crore at the EBITDA level. This highlights how the underlying operational challenges can impact a company’s profit.
Despite the eye-catching profit figure, investor sentiment remained muted. Shares of TMPV fell over 7% at the time of writing as concerns over the performance of its luxury arm, Jaguar Land Rover (JLR), overshadowed domestic gains. Analysts largely recommended a ‘reduce’ or ‘sell’ rating for the newly demerged TMPV stock. Let’s explore TVMP share price analysis in detail.
The consolidated revenue for TMPV declined 13.5% to Rs. 72,350 crore, weighed down by JLR, which suffered a severe production halt following a cyberattack. Revenue at the UK-based luxury unit slid 25% to £4.9 billion ($6.46 billion). JLR’s EBITDA margin fell sharply to 8.6%, while free cash flow was negative at £790 million ($1.04 billion) for the quarter. The cyber disruption, combined with elevated US tariffs, materially impacted volumes and profitability.
In response, JLR revised its FY26 EBIT margin guidance to 0-2% from an earlier 5-7%, and now expects full-year free cash outflows of £2.2-2.5 billion ($3-3.4 billion). Management indicated that some impact from the cyber incident could continue into Q3, though production normalized in November.
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Tata Motors’ passenger vehicle and electric vehicle (EV) businesses showed robust performance. Revenue for the PV division grew 15.6% to Rs. 13,529 crore, supported by an 11% increase in vehicle sales to 144,500 units. EBITDA margin stood at 5.8%, while EBIT margin was broadly flat at 0.2%, reflecting commodity cost pressures and temporary dips in the ICE vehicle segment.
The EV business, however, showed sequential margin improvement, aided by production-linked incentives and strong demand. Models such as the Nexon EV and Harrier EV continued to gain traction, while the Nexon became India’s best-selling model in September and October. TMPV expects a strong second half, driven by lean inventories, new launches like the next-generation Sierra, and steady market conditions.
Brokerages cautioned that challenges at JLR remain the primary drag. Motilal Oswal noted weak demand across key markets, including China, the US, and Europe, and highlighted elevated vehicle manufacturing expenses. As a result, MOSL initiated coverage on TMPV with a ‘Sell’ rating and a target price of Rs. 312 per share. Similarly, Nuvama Institutional Equities suggested a ‘Reduce’ rating, with a September 2027 target of Rs. 385, while ICICI Securities downgraded the stock to ‘Hold’ with a revised SoTP-based target of Rs. 375.
Also Read: Tata Motors' Share Price Falls Ahead of Q2 Results Announcement
TMPV share price showed bearish sentiments at press time, although the company’s domestic operations are recovering. The ongoing difficulties at JLR, coupled with cyberattack fallout and elevated tariffs, are expected to keep near-to-medium-term investor sentiment cautious. Thus, leaving TMPV’s stock under pressure despite the headline profit surge.
1. Why did Tata Motors’ profit surge in Q2FY26?
The 2,110% profit surge was primarily driven by a one-time exceptional gain of Rs. 82,620 crore from the carve-out of its commercial vehicle business. Operationally, TMPV posted a net loss excluding this item.
2. How did Jaguar Land Rover perform in this quarter?
JLR faced significant setbacks following a cyberattack that halted production and retail operations. Revenue dropped 25% to £4.9 billion ($6.46 billion), EBITDA margin fell to –8.6%, and free cash flow was negative £790 million ($1.04 billion).
3. What is the outlook for Tata Motors’ domestic vehicle business?
The domestic passenger vehicle and EV business remained resilient, with revenue up 15.6% and vehicle sales growing 11%. Nexon EV and Harrier EV showed strong demand, supported by GST cuts and festive season momentum.
4. Why are investors cautious despite the huge profit?
Investors remain wary because the profit includes a massive one-time gain, while core operations, especially JLR, face ongoing challenges like cyberattack fallout, elevated tariffs, weak global demand, and reduced margins.
5. What are analysts saying about TMPV stock?
Brokerages largely recommended ‘reduce’ or ‘sell’ ratings. Motilal Oswal set a Rs. 312 target, Nuvama Rs. 385, and ICICI Securities revised to Rs. 375, citing JLR struggles and cautioning that stock performance may remain under pressure.