Synopsis:
Automobile Corporation of Goa Ltd, a Tata Group company with Tata Motors holding a 48.98 percent stake, reported mixed Q2FY26 results, with a quarter-on-quarter decline in sales and profits but strong year-on-year growth.
Tata Group stock came into focus following its Q2FY26 results, with sales and profits declining on a quarter-on-quarter basis but showing strong year-on-year growth.
Automobile Corporation of Goa Ltd, a Tata Group company with a market capitalization of Rs. 1,339.10 crore, opened at Rs. 2,075.15 and touched an intraday high of Rs. 2,290 against a previous close of Rs. 2,090.55, marking a rise of 9.52 percent. Tata Motors holds a 48.98 percent stake in the company.
What’s the News?
In Q2FY26, Automobile Corporation of Goa Ltd reported a decline in revenue and profitability compared to the previous quarter. Sales fell from Rs. 256 crore in Q1FY26 to Rs. 206 crore, down 19.53 percent. Profit before tax decreased from Rs. 31 crore to Rs. 20 crore, a drop of 35.48 percent, while net profit declined from Rs. 23 crore to Rs. 15 crore, down 34.78 percent.
Compared to Q2FY25, Automobile Corporation of Goa Ltd posted strong growth across revenue and profits. Sales rose from Rs. 130 crore to Rs. 206 crore, up 58.46 percent. Profit before tax increased from Rs. 10 crore to Rs. 20 crore, a growth of 100 percent, while net profit more than doubled from Rs. 7 crore to Rs. 15 crore, up 114.29 percent, reflecting robust annual performance.
Operational Highlights
During Q2FY26, the company strengthened its operational performance compared to the previous quarter of corresponding year, delivering 1,966 bus bodies against 1,332 units in Q2FY25. The company actively pursued STU orders during the quarter to optimise capacity utilization during the lean period, supporting higher profitability year-on-year. A notable milestone was achieved with the manufacture of the company’s 100,000th bus since inception.
Future Outlook
Looking ahead, the company remains committed to its “Net Zero” sustainability initiatives, aiming to foster a greener and more sustainable future. A 810 kWp solar power plant has been successfully commissioned at the Jejuri facility, reducing the carbon footprint and promoting clean energy usage.
The solar project at the Goa facility is under implementation and is expected to be completed within the current financial year. The company also continues to focus on securing strategic orders to optimize capacity utilization during the lean Q3 period.
Also read: 5 Adani Group stocks in which FIIs reduced their stake worth ₹7,931 Cr in Q2 FY26
How will the Tata Motors Demerger Affect Automobile Corporation of Goa Ltd?
Pursuant to the Composite Scheme of Arrangement approved by the Hon’ble National Company Law Tribunal, effective October 1, 2025, Tata Motors Limited (TML) has demerged its Commercial Vehicles business into TML Commercial Vehicles Limited (TMLCV). Consequently, TML’s holding of 29,82,214 shares, representing 48.98 percent in Automobile Corporation of Goa Limited, has been transferred to TMLCV.
About the Company
Automobile Corporation of Goa Ltd manufactures and sells pressed parts, components, sub-assemblies, and bus bodies across India. Its operations are divided into the Pressing Division, which provides pressed components and assemblies for various automobiles, and the Bus Body Building Division, which designs and manufactures bus bodies for staff, school, sleeper, luxury, and city buses, as well as moffusil buses, police vans, and mobile blood banks. The company also exports its products and has been in operation since 1980, headquartered in Sattari, India.
Written by – Manan Gangwar
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The post Tata Group stock jumps 10% after reporting 115% YoY increase in net profits appeared first on Trade Brains.