Tata Motors will announce its Q2 results on Friday.

What To Expect: Tata Motors is expected to post a 19.42% increase in net profit to ₹4,621.8 crore. The Jaguar Land Rover maker’s revenue is expected to decline 2.97% from the previous year to ₹1.02 lakh crore.

Analysts expect the Tata Group company to post weak revenue due to muted volumes from both commercial and passenger vehicles.

Motilal Oswal expects weak Q2 performance for Tata Motors’ India business, with both passenger and commercial vehicle volumes down 5% and 19% year on year, respectively.

Commercial vehicle EBIT margin is likely to remain flat at 7.8%, while passenger vehicle EBIT margin is expected to drop to -0.9% from 1.7% in Q2FY24 due to increased discounts.

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PL Capital, however, projects a 2.9% year-on-year revenue growth, mainly driven by volume growth in JLR, with an expected 67 basis point EBITDA margin expansion due to a favourable product mix. Net profit is anticipated to rise by 28.4%.

KR Choksey forecasts a 6.1% year-on-year decline in revenue due to low demand, inventory constraints and supply issues affecting JLR. On a quarter-on-quarter basis, revenue is expected to decline by 8.7%.

The research firm projects a 60 basis point rise in EBITDA margin due to a favourable product mix, but a 70 basis point sequential decline due to higher discounts. Net profit is expected to grow 13.1% year on year but falls 16.7% quarter on quarter.

Recently, Jaguar Land Rover, Tata Motors’ luxury car division saw a 12.8% decline in sales to 5,257 units in October. Domestic sales were also slightly down to 82,682 vehicles from 82,954 in the previous year.

Price Action: Shares of Tata Motors were down 1.73% to ₹825.20 on Thursday.

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