Nissan H1 FY2026 Operating Profit Rises ¥107.7 Billion, Maintains Full-Year Outlook

Nissan Motor has reported an improvement in its financial performance for the first half of FY2026, with operating profit rising by ¥107.7 billion (approximately ₹6,354 crore) year on year to ¥80 billion (₹4,720 crore) for the six months ended September 30, 2026. The improvement was supported by cost reductions under its Re restructuring programme, which generated an additional ¥110 billion (₹6,490 crore) in savings during the period.

Consolidated net revenue increased by ¥493.3 billion (approximately ₹29,105 crore) to ¥6.07 trillion (₹3.58 lakh crore), compared with ¥5.58 trillion (₹3.29 lakh crore) in the corresponding period last year. Nissan's operating margin also improved to 1.3% from a negative 0.5% a year earlier.

Despite the improvement in operating performance, the company continued to report a net loss. Net loss attributable to owners of the parent narrowed to ¥39.7 billion (approximately ₹2,342 crore) in H1 FY2026 from ¥221.9 billion (₹13,092 crore) in the year-ago period. The improvement of ¥182.2 billion (₹10,750 crore) reflects a recovery in operating profit, although the company has yet to return to net profitability.

Nissan's second-quarter performance presented a more mixed picture. Revenue increased 8.2% year on year to ¥3.11 trillion (approximately ₹1.83 lakh crore), but operating profit fell to ¥2.1 billion (₹124 crore) from ¥51.5 billion (₹3,039 crore) in Q2 FY2025. The decline was primarily due to the non-recurrence of the previous year's benefit from lower US emissions-related expenses.

Second-quarter net loss narrowed to ¥43.5 billion (approximately ₹2,567 crore) from ¥106.2 billion (₹6,266 crore) a year earlier, primarily reflecting lower restructuring-related expenses.

Re cost reductions support operating recovery

Nissan attributed the first-half improvement in operating profit partly to its Re programme, which delivered ¥110 billion (₹6,490 crore) in additional cost savings during the period. The programme is intended to improve the company's cost structure and operating performance amid challenging market conditions.

Market performance remained uneven across regions. In the US, demand for locally produced models, including the Rogue, Frontier and Pathfinder, supported sales growth. Pricing and a richer grade mix also contributed to improved revenue.

In Japan, the new Elgrand and Kicks models supported sales growth. However, conditions in China remained challenging, with weaker demand, a faster-than-anticipated shift towards new energy vehicles (NEVs) and intensifying competition affecting sales.

In response, Nissan is adjusting internal combustion engine production and dealer inventory in China, while accelerating its N-series NEV portfolio and expanding exports.

Nissan maintains FY2026 operating profit outlook, cuts sales forecast

Nissan has maintained its FY2026 operating profit forecast at ¥200 billion (approximately ₹11,800 crore) and expects to generate ¥120 billion (₹7,080 crore) in operating profit in the second half. It also expects automotive net cash to remain above ¥1 trillion (₹59,000 crore) at the end of the fiscal year.

However, the company has lowered its full-year global sales forecast from 3.15 million units to between 2.97 million and 3 million units, reflecting weaker-than-expected conditions in China. The outlook for the US and Japan has been revised upwards, supported by sales momentum in both markets.

For the second half, Nissan expects higher sales volumes, new model launches and a richer product mix to support profitability. These factors, alongside further progress under Re, are expected to offset foreign exchange and raw material cost pressures, as well as the absence of the one-time tariff benefit recognised in the first half.

The company's upcoming product launches are expected to contribute to its second-half performance. These include the Rogue Hybrid in the US, the Frontier Pro PHEV in Mexico, and the Elgrand and Kicks in Japan. In Europe, Nissan plans to introduce the Pixo EV, while further product unveilings include the Skyline and Patrol in Japan and the Juke EV in Europe.

Nissan reported approximately ¥800 billion (₹47,200 crore) in automotive net cash and ¥2.2 trillion (₹1.30 lakh crore) in cash and cash equivalents at the end of the first half, providing liquidity as it continues its restructuring programme.

Chief executive officer Ivan Espinosa said the company would continue to focus on improving its operating performance and cost structure while responding to changing market conditions, particularly in China. He also pointed to opportunities from upcoming product launches in Mexico and the company's electric vehicle plans in Europe.

Nissan will announce a new business plan in February 2027, outlining the direction for its next phase.