Tata Motors Share Price Dips 1.58% at ₹391.65 as Investors React to Q2 Loss

Overview:

• Tata Motors’ revenues grew by 6%, however, the company reported a consolidated loss of ₹867 crore in Q2.

• The Commercial Vehicles segment of the automobile giant did well, with improved margins and increasing volumes.

• Tata Motors’ shares remained under pressure as investors tracked valuation losses alongside the company's recovery path.

Tata Motors' share price decreased after the company reported a consolidated loss for the quarter ended September 2025. The stock was down by 1.58% to ₹391.65 at press time. The stock opened the day at ₹397.95, the same price as the previous close. Tata Motors' stock’s trading volume was over 83 lakh shares. The volume-weighted average price (VWAP) for the stock was ₹394.20, which indicates a moderate trading activity. Let’s explore an in-depth Tata Motors share price analysis based on Moneycontrol data. 

Tata Motors Q2 Results: Revenue Grows, Profit Takes a Hit

Tata Motors reported a consolidated loss of ₹867 crore, which was in sharp contrast to the consolidated profit of ₹498 crore recorded in the same quarter of the previous year. The revenue increased 6% to ₹18,585 crore on the back of healthy demand across key business verticals. However, the strong top line was not reflected in a strong bottom line because of valuation-related losses and pressure on profitability.

The company reported 11.4% EBITDA and 8.8% EBIT margin, lower than the previous quarters. The comfortable liquidity position of Tata Motors was maintained at a net cash of ₹1,200 crore to support operational and investment flexibility.

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Commercial Vehicles Drive Momentum

The CV segment continued to be the strong performer for Tata Motors during this quarter. Revenue for the division increased to ₹18,370 crore, up 6.6% from the same period a year ago. This was supported by improved pricing, strong sales volumes, and recovery in logistics and infrastructure activity.

EBITDA margins in the CV segment increased to 12% versus 10.7% a year ago, reflecting better operational efficiency. EBIT margin increased substantially to 9.8% from 7.8%. Profit before tax increased to ₹1,694 crore, aided by healthy wholesale volume of 96,800 units, up 12% year-on-year.

Exports volumes showed strong momentum, increasing 75%, while domestic market share stood at 35.3%. Further, it extended its EV mobility plans by signing an MoU for the supply of 100 Magna electric intercity coaches, marking its presence in sustainable transportation.

Management Commentary and Strategic Outlook

MD & CEO Girish Wagh said that, along with the festive demand and benefits of GST 2.0, the quarter's strong operational performance was due to improving product availability. He added that constant customer engagement and activation programs contributed significantly to an increase in sales, up 12% year-on-year. CFO GV Ramanan asserted that Tata Motors reported its best-ever H1 free cash flow, supported by strong margins and disciplined working-capital management.

Share Price Performance and Market Sentiment

Tata Motors' share price has had a weak year so far, with a fall of 48% in the last year and 43% in the last six months. However, it has increased insignificantly by 0.32% in the last month. The shares reached an intraday high of ₹399.60 and a low of ₹391.25, reflecting a relative lack of bullish momentum at the end-of-day price. Its TTM EPS stands at 57.54, and its PE is low at 6.80 against the sector PE of 27.85, hence undervalued.

Tata Motors' share price chart on Moneycontrol shows a loss of 1.62% at 1.35 PM: 

Analyst sentiment remains cautious, with 41% recommending ‘Hold’, while 22% suggest ‘Buy’ on Moneycontrol. Investors will be keenly watching the coming quarters to gauge if profitability improves and how valuations of its investments can stabilize amidst its ongoing margin pressure and market volatility.

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FAQs

1. Why is Tata Motors' share price down today?

The stock of Tata Motors dropped after the company announced its Q2 performance, which was weaker than expected, as it reported a consolidated loss of ₹867 crore. Although the sales growth was strong, investor sentiment was soured by valuation losses on its listed investment, and margin pressures led to the stock moving lower.

2. How did Tata Motors perform in the September 2025 quarter?

In Q2, Tata Motors announced consolidated revenue growth of 6% to ₹18,585 crore but also experienced a loss. While operations continued to perform well in the Commercial Vehicles segment, overall profitability was impacted by mark-to-market valuation losses and the ongoing drag from sector uncertainty.

3. Which segment fared the best for Tata Motors this quarter?

The Commercial Vehicles segment achieved the strongest results for the quarter, marked by revenue growth, improved margins, and robust domestic and export volume growth. The improved pricing, strong demand, and strong logistics also helped this segment offset weaker growth results in other parts of the business.

4. Is the stock of Tata Motors undervalued at the moment?

At a TTM PE of 6.80 compared to the TTI Sector PE of 27.85, Tata Motors' stock appears cheap; however, investors will need to consider earnings volatility, ongoing valuation losses, and market conditions when interpreting this as a buy opportunity.

5. What should investors look at in the coming quarters for Tata Motors?

Investors should monitor whether the company can stabilize its profitability, reduce valuation-related losses, and sustain volume growth in key segments. Improvements in global markets, cost efficiency, and the success of its EV initiatives will also determine the future share price performance of the company.