Tata Motors Q2 cons net seen up 17% YoY at Rs 2,200 cr

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26 Aug, 2025 12:21

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Moneycontrol Bureau

India's largest commercial vehicle maker Tata Motors, which also owns the British luxury Jaguar and Land Rover brands will announce its second results later on Wednesday. The comapny's consolidated net profit is expected to rise 17 percent year-on-year to Rs 2,200 crore, according to a CNBC-TV18 poll.

It should be noted that Tata Motors had exchange loss of Rs 439 crore and profit from investment in associated company in the year ago quarter.

Its consolidated revenue is seen up 22 percent year-on-year at Rs 43,900 crore in July-Sep, led by JLR, which will be boosted by incremental demand for its Evoque SUV.

However, on a quarter-on-quarter basis, the sales growth could be lower, due to sequential weakness in JLR sales, due to slowdown in markets like China.

JLR's sales last quarter are seen at 78,481 units, up 15 percent year-on-year, but down 6 percent sequentially.

Tata Motors' EBITDA is expected to rise 26 percent to Rs 5,700 crore, while operating margin will expand to 12.9 percent from 12.4 percent.

JLR is expected to report a profit of GBP 241 million, little up from GBP 238 million, a year ago, while revenue is seen up 14 percent to GBP 3.33 billion in the second quarter. Operating margins will be slightly lower at 14 percent, versus 14.96 percent a year ago.

STANDALONE GROWTH

Tata Motors remains India's largest truck maker by a wide margin, but its standalone earnings now only account for 10-11 percent of its consolidated results.

Its net profit is seen at Rs 191 crore, up from Rs 102 crore in the year ago quarter. Revenue, however, is expected to be sluggish at Rs 12,871 crore, down about 1 percent, as medium and heavy commercial vehicles in the domestic market continue to see slow sales.

Tata Motors' sales in the quarter rose 7 percent (17 percent sequentially) to 2.21 lakh units. While LCV sales maintained steady speed, up 15 percent at 1.03 lakh units, MHCV sales declined 16 percent to 45,488 units.

STOCK TALK

Tata Motors shares were up 1 percent at Rs 269.65 in morning trade on Wednesday. The stock has gained 10 percent since June-end, while tbe broader NSE Nifty has gained 8.5 percent.

Morgan Stanley upgraded Tata Motors to "overweight" last week, saying that while Q2 earnings would be weak, it would be a good opportunity to buy on dips. JLR's product pipeline is strong and volumes should revive sharply going ahead as sales of the new Range Rover and Jaguar XF and XJ variants commence, say analysts.