Tata Motors Passenger Vehicles Ltd (TMPV): Q2 FY27 results

Charts:

(1) 5 quarters revenue & net profit/loss with EPS

(2) EBITDA margin

(3) JLR and India revenue

Quality of earnings

• The loss comes from one-off JLR charges. JLR booked £530 mn of exceptional items: restructuring, separation costs and write-downs of assets and products under development [2]. Before these, JLR made a small profit (£6 mn PBT vs a £485 mn loss a year ago).
• Year-ago figures are distorted both ways. Q2 FY26 revenue was hit by the JLR cyber attack, which flatters this year's 34% growth. Q2 FY26 profit (₹76,170 cr) came from a ₹81,507 cr one-time gain, most likely linked to the demerger (my view). Neither year is a clean comparison.
• India business growing fast: revenue ₹20,400 cr (+51%), volumes +40%, electric-vehicle volumes +90%.

Margins (Chart 3)

EBITDA margin: ≈−1.9% → 1.3% → 10.7% → 6.4% → 5.0% (my calculation).

JLR guidance cut [2]

• FY27 JLR EBIT margin now 2–3%, with free cash outflow of about £1.25 bn, citing market challenges, geopolitics and exceptional costs. Earlier guidance wasn't in coverage.
• Q2 free cash outflow £540 mn; cash £1.8 bn.

Positives

• India PV revenue +51%, EV volumes +90%
• JLR revenue +20% (£5.9 bn)

Concerns

• £530 mn JLR exceptional charges
• JLR guidance reduced, cash outflow expected

Things to track in Q3 FY27

1. JLR wholesales and margins
2. Cash flow vs the −£1.25 bn guidance
3. Further restructuring charges
4. India PV and EV market share

Not a buy/sell recommendation. I am not a SEBI-registered analyst. Facts are sourced; opinions are labelled.