Tata Motors has reported a significant downturn in its first-quarter performance for FY26, with consolidated net profit falling to ₹4,003 crore. This marks a sharp year-on-year drop of over 62% compared to ₹10,587 crore in the same quarter last year. On a quarter-on-quarter basis, profit also contracted by more than 50% from ₹8,556 crore recorded in Q4 FY25.
The decline was largely driven by reduced volumes across key business segments and weaker earnings from Jaguar Land Rover (JLR), which has been hit by tariffs imposed by the United States.
Revenue Performance
Consolidated revenue from operations for the quarter stood at ₹1.03 trillion, down 2.45% from ₹1.06 trillion a year earlier. Sequentially, revenue saw a steeper drop of 12.72% from ₹1.18 trillion in the previous quarter.
PB Balaji, Group CFO of Tata Motors, commented that despite macroeconomic pressures, the company maintained profitability, supported by its core business strength. He expressed optimism about performance recovery in the second half of the year, citing potential tariff clarity, festive season demand, and the upcoming October 2025 demerger as key drivers for momentum.
Segment Highlights
Jaguar Land Rover (JLR)
- Revenue: £6.6 billion (approx. ₹67,320 crore), down 9.2% year-on-year.
- Performance was affected by tariff-related headwinds, lower wholesale volumes, and the planned phase-out of legacy Jaguar models.
Tata Commercial Vehicles (CV)
- Revenue: ₹17,009 crore, down 4.7%.
- Wholesale volumes: 88,000 units (-6% YoY).
- Domestic sales fell 9%, but exports surged by 68%.
Tata Passenger Vehicles (PV)
- Revenue: ₹10,877 crore, down 8.2%.
- Wholesale volumes: 124,800 units (-10.1% YoY).
- Electric vehicle (EV) penetration held steady at 13%, with 16,200 EV units sold during the quarter.
Outlook
While Q1 numbers reflect multiple challenges, Tata Motors is focused on leveraging the festive demand cycle, resolving trade barriers, and driving operational efficiencies to deliver a stronger second-half performance.
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IMAGE: AFP
