Tata Motors' Q1 profit plunges 63 per cent over low sales
This decline was attributed to a volume decline across segments, drop in JLR profits impacted by tariffs imposed by US and high base effect due to gain from sale of discontinued operations. During the quarter, the company's total revenue from operations stood at Rs 1,04,407 crore against Rs 1,07,102 crore in the year-ago period.
PB Balaji, Group Chief Financial Officer of Tata Motors said that despite tiff macro headwinds, the business delivered a profitable quarter, supported by strong fundamentals. He added that as tariff clarity emerges and festive demand picks up, the company is aiming to accelerate performance and rebuild momentum across the portfolio.
'Against the backdrop of the upcoming demerger in October 2025, our focus remains firmly on delivering a strong second-half performance,' stated Balaji who is set to become the CEO of Jaguar Land Rover.
Tata Motors expects demand situation likely to remain challenging. 'We will continue to focus on strengthening the business fundamentals and mitigate the impact of tariffs by leveraging the brand strength to drive a better mix, and targeted actions to improve contribution margins,' said the automaker.
Jaguar Land Rover's revenue in Q1FY26 dropped 9.2% to £6.6 billion, down when compared to Q1FY25. The British brand said that wholesales volumes and revenues in the quarter were impacted by the application of 27.5% US trade tariffs on UK- and EU-produced cars exported to the US, and the planned wind down of legacy Jaguar vehicles ahead of the launch of new Jaguar.
'US trade tariffs also had a direct and material impact on profitability and cash flow in the period. The US-UK trade deal will significantly reduce the financial impact of US tariffs going forward. PBT in the quarter was £351 million, down from £693 million a year ago with EBIT margin at 4.0%. The decrease in profitability YoY was impacted by the introduction of US tariffs and FX headwinds in the period,' said JLR.
Tata Motor's commercial vehicle (CV) division began Q1FY26 on subdued note. Domestic volumes were down by 9% while exports were up by 68%. Revenues were down by 4.7% to Rs 17,000 crore.
Domestic passenger vehicle (PV) division also remained in pressure, as the revenues of this business stood at Rs 10,900 crore (-8.2%) on account of 10% drop in volumes. EBITDA margin was down by 180 bps YoY at 4.0% while EBIT margins declined by 310 bps YoY to (2.8)%.
'Profitability was impacted as a result of adverse volumes, realizations and impact of leverage, but was offset in part by our continued drive on savings in variable costs,' said the automaker.
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