Question about the layover and Barajas Airport (Madrid)

I’m thinking about buying a ticket to Munich, and Air Europa is offering the trip for almost 150 euros (a significant amount to me at this moment) less than other airlines, so I’m seriously considering flying with them. However, I have a question about the feasibility of this layover. Here’s the itinerary:

Flight 1 (Air Europa): 1:50 p.m. (GRU) → 5:00 a.m. (MAD) (-1 day) Terminal 1

2:10 h layover

Flight 2 (Air Europa): 7:10 a.m. (MAD) Terminal 2 → 9:45 a.m. (MUC)

Since both flights are with the same airline, will the second flight wait if the first one is delayed? I’m a European citizen, so I imagine queues and immigration—if there are any—will be smooth, but I’ve never been to this airport and I’m unsure about changing terminals between flights, especially with a layover of only 2 hours. Could any of you please advise me on this?