- Tata Motors' PV arm reported a loss due to exceptional items in Q2
- Revenue for the passenger vehicle segment rose by 35 percent year-on-year
- Despite revenue growth, the company missed market estimates in the quarter
Tata Motors PV Q2 Results: Tata Motors Passenger Vehicles reported a consolidated net loss for the July-September quarter of current fiscal (Q2FY27) on Friday, hit by a one-time charge in exceptional charges, as the automaker navigated restructuring costs and pressure at its luxury Jaguar Land Rover business. The passenger vehicles (PV) arm of the Tata Group automaker reported a consolidated net loss of Rs 5,531 crore, compared to a net profit of Rs 76,170 crore in the corresponding period last year.
The British subsidiary continues to recover from last year's cyberattack that disrupted production and deliveries, while ongoing restructuring and investment in its next-generation vehicle portfolio weigh on costs and cash flow.
The carmaker expects an adjusted EBIT margin of 2% to 3% in fiscal year 2027, down from its earlier forecast of around 4%.
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Costs from the restructuring hit the Indian parent's bottom line for the July-September quarter.
The company said elevated commodity costs and foreign exchange movements were key margin pressures, while warning that geopolitical uncertainties and volatility in commodity prices would remain key challenges going forward.
Major automakers, including Tata Motors, have also raised vehicle prices to offset rising input costs.
Its domestic passenger vehicle business reported a core earnings margin of 4% during the quarter, down 180 basis points, despite a 51% jump in revenue.
More to come
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