The recently separated entities of the Tata Group, Tata Motors and Tata Motors Passenger Vehicles (TMPV), have unveiled their first independent financial results for the second quarter of the fiscal year 2025-26. The reports paint a starkly contrasting picture of the two businesses in their new avatars.
A Tale of Two Quarters: Divergent Financial Paths
The commercial vehicles arm, Tata Motors (TMCV), reported a consolidated net loss of ₹867 crore for the September quarter. This performance marks a significant downturn from the ₹498 crore net profit it had recorded in the same period last year. The company attributed this loss primarily to mark-to-market losses worth ₹2,026 crore linked to its investment in Tata Capital.
On a more positive note, the company's revenue from operations showed resilience, increasing by 6% year-on-year to ₹18,585 crore, up from ₹17,535 crore a year earlier. In a significant strategic update, Tata Motors confirmed that its proposed acquisition of IVECO is progressing as planned. The deal, announced on July 30, 2025, is undergoing regulatory approvals and is expected to be finalized by April next year, potentially boosting the company's topline to an estimated $24-25 billion.
Passenger Vehicles Unit's Profit Skyrockets
In a dramatic contrast, Tata Motors Passenger Vehicles posted an astronomical 2110% surge in profit, which soared to ₹76,170 crore for the quarter ended September. This is a massive jump from the ₹3,446 crore profit reported in the corresponding quarter last fiscal year.
However, this extraordinary performance was largely driven by a one-time gain connected to the demerger of its commercial vehicles unit. Excluding this exceptional item, the company would have slipped into the red with an underlying loss of ₹6,368 crore. Its total operational revenue also declined by 13.5% to ₹72,349 crore, down from ₹83,656 crore in the year-ago period.
The company cited a significant cyber incident at its Jaguar Land Rover (JLR) unit as a major factor impacting performance. Consequently, JLR's full-year profit margin forecast has been drastically revised down to 0-2% from the earlier projection of 5-7%.
Expert Views: Which Tata Auto Stock is a Better Bet?
Market analysts have offered divergent perspectives on the future prospects of the two demerged entities. Harshal Dasani, Business Head at INVAsset PMS, noted visible weakness in TMPV's Q2 results, affecting both the domestic passenger vehicle segment and the JLR division due to production disruptions, softer global demand, and margin pressures.
He observed that while the Commercial Vehicles business also reported a quarterly loss, its operational trend appeared more stable. "Revenue saw a modest uptick, though the backdrop remains challenging due to slower infrastructure ordering, competitive intensity and broader freight-cycle softness," Dasani added.
Abhinav Tiwari, Research Analyst at Bonanza, pointed out that Tata Motors has benefited from reduced GST rate cuts, which have improved operating expenses by 1-2%, aiding profitability. He also sees potential from fleet expansion and reviving demand in LCVs. Tiwari opined that Tata Motors (TMCV) represents the better option post-demerger.
Conversely, Dasani believes that strategically, the Passenger Vehicles entity still offers more attractive long-term potential. "It houses India’s fast-growing EV franchise and the JLR luxury portfolio, both of which can re-rate meaningfully once supply chains normalise and demand stabilises. However, near-term execution risks remain elevated," he stated.
In terms of market dominance, Tata Motors maintains a commanding position in the commercial vehicles space with more than 35% market share in the domestic market for H1FY26. Meanwhile, TMPV holds the third position among passenger vehicle makers in India with a 12.8% market share.
