1. At a Glance
Tata Motors Passenger Vehicles Ltd — the automotive beast that built India’s dreams on wheels — has just dropped a quarterly performance that reads like a masala thriller. Revenue for Q2 FY26 stands at ₹72,349 crore (down 13.5% QoQ), but the real drama unfolds in the PAT column: a mind-bending ₹-3,412 crore, down215%. What happened? Cyber attack at JLR, demerger hangover, and the ghosts of “exceptional gains” (₹82,318 crore!) dancing in the footnotes.
At a current market price of ₹362, with aP/E of 9.88, abook value of ₹301, and amarket cap of ₹1,33,411 crore, this is no small fry — it’s India’s third-largest passenger car maker, holding13.3% PV market shareand a jaw-dropping53% EV sharein Q3 FY25. But behind that electric smile lies a battery of accounting fireworks: anROE of 28.1%,ROCE of 20%, and anEV/EBITDA of 4.1xthat screams, “Yes, we make profits, but also drama.”
Debt? Still ₹67,258 crore — but hey, it’s down from ₹107,264 crore two years ago, so technically, they’re on a “fitness plan.” The company has reduced leverage, increased capex (₹8,000 crore target FY25), and is preparing for its big demerger debut — splitting its CV and PV/EV/JLR segments like an automotive version ofKaran Arjun.
2. Introduction – The Legend of Tata’s Four Wheels and Billion Hopes
Let’s rewind a bit. Tata Motors started as the humble truck maker that made India move before Ola and Uber existed. Then it turned global — swallowing Jaguar Land Rover in 2008 for $2.3 billion. Fast forward to FY25: JLR still accounts for71% of consolidated revenues, proving that the UK subsidiary remains both its crown jewel and migraine medication.
In Q2 FY26, Tata’s financials looked like a rollercoaster ride engineered by Elon Musk. Revenue fell to ₹72,349 crore, PAT crashed into the negative zone, but the balance sheet still managed to flex ₹344,264 crore in assets. To make it spicier, the quarter included an “exceptional gain” of ₹82,318 crore from restructuring — yes, that’s not a typo. A balance sheet miracle that makes the audience go,“Kya accounting hai yaar!”
While JLR’s cyberattack brought temporary chaos in the UK, the India PV business continued to purr with the launch of the updated Tiago, Tigor, and Nexon EVs. Tata’s EV dominance — 53% market share in India — is like Shah Rukh Khan at the box office: consistent, electric, and occasionally overacting.
The demerger, announced in March 2024, is Tata’s way of saying, “Ab business alag alag karein.” One arm will handle Commercial Vehicles (TMLCV), the other will own PV, EV, and JLR — all to unlock value and confuse accountants.
3. Business Model – WTF Do They Even Do?
Tata Motors Passenger Vehicles Ltd (TMPV) isn’t just selling cars — it’s running an automotive empire. The business operates across four major divisions, each with its own personality disorder:
1. Jaguar Land Rover (71% of revenue)– The London-born, Mumbai-owned luxury child that still makes Tata look posh at global investor meets. With brands like Range Rover, Defender, and Jaguar, it sells emotions disguised as SUVs. But FY25 saw volumes decline — Range Rover down to 161.3k units (from 201.1k), and Jaguar doing its best disappearing act, plunging from 49.6k to 19.8k.
2. Tata Commercial Vehicles (17%)– The hardworking uncle of the family. It still holds a 37.7% market share in India but has been losing ground (41.7% in FY23). Heavy trucks declined, SCV and pickups remained flat, and exports fell. It’s profitable, but the shine is dimming.
3. Tata Passenger Vehicles (11%)– The cool cousin, making EVs that actually work. Tata’s PV unit, with cars like Nexon, Punch, and Harrier, sells over1.39 lakh cars per quarter. The EV portfolio, now 16,119 units (Q3 FY25), dominates India’s EV scene with a 53% share.
4. Others (1%)– Mostly vehicle financing. ₹17,884 crore disbursed in FY24, proving Tata’s cars and Tata’s loans are both selling briskly.
If the group were a movie, JLR is the international star, CV is the veteran
actor, PV is the breakout youth hero, and the finance arm is the producer funding the chaos.
4. Financials Overview – When Numbers Go on Safari
| Metric (₹ Cr) | Latest Qtr (Q2 FY26) | YoY Qtr (Q2 FY25) | Prev Qtr (Q1 FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 72,349 | 83,656 | 87,677 | -13.5% | -17.5% |
| EBITDA | -1,404 | 9,914 | 8,162 | -114.2% | -117.2% |
| PAT | -3,412 | 3,521 | 4,003 | -197% | -185% |
| EPS (₹) | -9.36 | 9.36 | 10.66 | N/A | N/A |
Commentary:This quarter’s financials resemble a Range Rover stuck in Bangalore traffic — massive engine, but going nowhere. Operating margins collapsed from 14% last year to -2%, and PAT turned negative despite a monstrous “other income” of ₹81,507 crore. It’s like throwing a party where you earn ₹80,000 crore in gains but still end up broke.
5. Valuation Discussion – The Great Tata Triangle
We’ll take three classic methods to triangulate Tata’s “educational fair value.”
(a) P/E Method:
- Current EPS (TTM): ₹255
- Industry P/E: 33.9x
- Tata P/E: 9.88xEven with a conservative multiple of 15–20x, the “educational fair value” range = ₹3,825–₹5,100 per share.
(b) EV/EBITDA Method:
- EV: ₹1,73,077 Cr
- EBITDA (FY25): ₹55,216 Cr→ EV/EBITDA = 3.1x vs peer avg ~7x (Maruti 13x, M&M 9x)Fair EV range: ₹3.8–₹4.5 lakh crore → implies ₹700–₹820/share range.
(c) DCF (simplified):Assuming free cash flow of ₹26,000 Cr (2025), growing 5% for 5 years, discounting at 12% → intrinsic range ₹650–₹800/share.
⚠ Disclaimer:This “fair value range” is purely foreducational purposesand should not be mistaken for investment advice.
6. What’s Cooking – News, Triggers, and Corporate Drama
Q2 FY26 was full of headlines that would make any corporate journalist grab popcorn.
- Cyberattack on JLR (Oct 2025):Temporarily halted UK production. JLR restarted by Oct 8. Immediate chaos, eventual recovery. Classic British resilience.
- Demerger Madness:On October 1, 2025, Tata Motors completed its grand split into TMLCV and TMPV. Record date: October 14. Each shareholder of Tata Motors got one share of TMPV for every one held.
- Renaming Saga:TML Commercial Vehicles Ltd officially became Tata Motors Ltd; the old Tata Motors became TMPV. Confused? Don’t worry, even auditors had to double-check names twice.
- Management Shuffle:CFO replaced (Dhiman Gupta
