The newly demerged Tata Motors Passenger Vehicles division has announced its first-ever quarterly results, and the numbers have taken the market by surprise. While Tata Motors has been a strong player in India’s passenger vehicle segment, its latest Q2 performance paints a mixed picture with sharp declines in consolidated revenue and profitability.
Below is a complete breakdown of the Q2 performance, including domestic PV business, JLR results, EBITDA numbers, and key financial indicators that shaped investor sentiment.
Consolidated Revenue Declines 13.5% YoY
On a consolidated basis, Tata Motors Passenger Vehicles reported a significant -13.5% year-on-year drop in revenue, which fell to ₹72,349 crore. This marks a sharp reversal in growth momentum, especially as the company deals with post-demerger restructuring, global demand challenges, and weaker JLR performance.
The stock reacted negatively, closing 1.75% lower at ₹391. For context, the company’s 52-week high stands at ₹508, while the 52-week low is ₹335.
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EBITDA Loss Widens Sharply
One of the most concerning elements in the Q2 results is the widening EBITDA loss. The company posted an EBITDA loss of ₹1,404 crore, compared to an EBITDA profit of ₹9,914 crore in the same quarter last year. This sharp swing reflects higher input costs, weaker operating leverage, and a notable slowdown in the international luxury segment. Additionally, the adjusted loss widened to ₹6,370 crore, compared to a profit of ₹3,056 crore a year ago.
JLR Sees a Major Revenue Crash
Jaguar Land Rover (JLR), the global luxury car arm of Tata Motors, delivered disappointing results.
Key highlights:
- Revenue plunged 24.3% YoY to £4.9 billion
- EBITDA margin dropped to -1.6%, down 1330 bps
- EBIT margin fell to -8.6%, down 1370 bps
The decline in JLR has significantly impacted consolidated performance, as luxury sales continue to face global slowdown pressures.
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Press Note Insights: Profitability Takes a Hit
In its official release, Tata Motors Passenger Vehicles highlighted:
- EBITDA loss: -₹0.1 thousand crore
- PBT loss: -₹5.5 thousand crore
- Automotive free cash flow: ₹8.3 thousand crore (positive)
Despite losses at the profit level, positive automotive free cash flow signals improved working capital management
Passenger Vehicles Segment Shows Strength
While the consolidated performance appears weak, the domestic PV business delivered an encouraging performance:
- PV revenue grew 15.6% to ₹13.5 thousand crore
- EBITDA margin stood at +5.8%, down only 40 bps
- EBIT margin improved slightly to 0.2%, up 10 bps
This indicates that the India passenger vehicles division remains strong, backed by growing demand for SUVs, EVs, and new product launches.
Investor Sentiment: Mixed but Watchful
Investors now hold a cautious outlook on Tata Motors Passenger Vehicles, especially due to the heavy losses from the consolidated and JLR business. However, the strong domestic performance and improving operational efficiencies provide some comfort.
The coming quarters will be crucial as the company focuses on:
- Improving JLR performance
- Strengthening EV and SUV portfolio
- Managing post-demerger efficiencies
- Boosting profitability across business units
