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Business Standard
2 days ago
- Automotive
- Business Standard
Tata Motors Q1 PAT tumbles 63% YoY to Rs 3,924 cr
Tata Motors reported a 62.7% decline in consolidated net profit to Rs 3,924 crore in Q1 FY26 compared with Rs 10,514 crore in Q1 FY25. Revenue from operations fell 2.5% YoY to Rs 1,03,792 crore in Q1 FY26, with performance impacted by volume decline in all businesses and a drop in profitability primarily at JLR. Profit before tax (PBT) tumbled 59.6% to Rs 5,561 crore in Q1 June 2025 compared with Rs 13,765 crore in Q1 June 2024. EBITDA stood at Rs 9,657 crore in Q1 FY26, registering de-growth of 35.75% compared with Rs 15,031 crore recorded in same quarter last year. EBITDA margin stood at 9.2% in Q1 FY26 as against 14% in Q1 FY25. With the demand situation likely to remain challenging, the company said that it 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. PB Balaji, group chief financial officer, Tata Motors said: Despite stiff macro headwinds, the business delivered a profitable quarter, supported by strong fundamentals. As tariff clarity emerges and festive demand picks up, we are 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. JLR revenues were down by 9.2% YoY to 6.6 billion in Q1 FY26 with EBIT margins at 4.0% (down 490 bps) affected by US trade tariff impact. Wholesale volumes & 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. The company said that 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. On outlook front, the company said that it remains committed to executing its reimagine strategy and expect investment spend to remain at 18 billion over the five year period starting in 2024, funded by operating cash flows. Guidance for FY26 remains unchanged, with EBIT margin in the range of 5% to 7%, improving year-on-year for FY27 and FY28, and with FY26 free cash flow close to zero. Adrian Mardell, JLR chief executive officer, said: Thanks to our talented people and the robust foundations we have built at JLR, we delivered an 11th successive profitable quarter amid challenging global economic conditions. We are grateful to the UK and US Governments for delivering at speed the new UK-US trade deal, which will lessen the significant US tariff impact in subsequent quarters, as will, in due course, the EU-US trade deal announced on 27 July 2025. Looking ahead, we remain focused on delivering our transformational Reimagine Strategy, including investing 3.8 billion this financial year to support the development of our next-generation vehicles, including our stunning new electric Range Rover and Jaguar models. Revenue from commercial vehicles fell 4.7% YoY to Rs 17,000 crore. Domestic volumes were down by 9% while exports were up by 68%. Q1 FY26 began on subdued note for the commercial vehicle industry with muted performance in the HCV and SCVPU segments while buses, vans, and ILMCVs registered modest YoY growth, the company stated in regulatory filing. Looking ahead, the company forecasts for a healthy monsoon across the country, reduction in repo rate and renewing thrust on infrastructure development, it expect volumes to improve progressively in the coming quarters. It remains focused on driving demand pull strategy and deepening customer engagement to deliver greater value and tailored solutions that help its customers grow their business. The business will continue to focus on double digit EBITDA delivery, higher ROCE and improve Vahan market shares in all segments by focusing on customer value proposition. Girish Wagh, executive director Tata Motors, said: Q1 FY26 was a challenging quarter for the commercial vehicle industry, with subdued demand across key segments impacting overall performance. We also witnessed a decline in domestic sales volumes, reflecting broader market softness and delayed fleet replacement cycles, while segments like Buses and Vans showed resilience and our International Business delivered growth. Our commitment to product innovation and customer-centricity remained strong. The launch of the Ace Pro mini-truck in multiple powertrain options received encouraging initial market response, reaffirming our focus on delivering relevant and affordable mobility solutions. Despite adverse volumes, the business delivered 12.2% EBITDA and healthy ROCE of around 40%. The acquisition of IVECO Group is a strategic leap forward in our ambition to build a future-ready commercial vehicle ecosystem. By integrating the strengths of both organizations, we will be unlocking new avenues for operational excellence, product innovation and customer-centric solutions. Tata Passenger Vehicles reported 8.2% decline in revenue to Rs 10,900 crore in Q1 FY26. In Q1 FY26, wholesale volumes stood at 1,24,800 units (down 10.1%), on account of industry decline & transitions for new models of Altroz, Harrier & Safari, even as the company continued to ensure controlled channel inventory growth. On outlook front, TaMo said that it had witnessed tailwinds towards the end of Q1 Tiago and Altroz have seen 22% increase in bookings in June 25, while launch has been extremely well received. Curated variants of Harrier & Safari have been launched at competitive price points. July month recorded highest-ever monthly EV sales, a significant milestone in the zero-emission journey. Thus, while overall industry growth is expected to remain subdued, the company is well positioned to leverage its new launches including hatchbacks and SUVs, while continuing to build on the EV momentum. It added that focus remains on improve profitability through key levers like aftersales transformation, leveraging technology and structural cost reduction. Shailesh Chandra, managing director TMPV and TPEM said: Q1 FY26 was a subdued quarter for the passenger vehicle industry, with volume pressures persisting across most segments. Demand softness weighed on overall performance, although the electric vehicle category remained a bright spot, supported by new launches and growing customer interest. Our continued focus on customer engagement and portfolio renewal remained strong during the quarter. New launchesAltroz and encouraging initial market response, with their full impact expected to unfold in the coming months. Looking ahead, while the overall industry growth is expected to remain muted, we are confident that our recent and forthcoming series of launchesacross ICE and EVswill enable us to outperform the market and strengthen our position across key segments. Finance costs decreased by Rs 533 crore to Rs 938 crore in Q1 FY26, contributed by reduction in gross debt. For Q1 FY26, net profit from joint ventures and associates amounted to Rs 132 crore compared with Rs 129 crore in Q1 FY25. Other income (excluding grants) was Rs 729 crore in Q1 FY26 compared with Rs 768 crore in Q1 FY25. Tata Motors, part of the Tata Group, is a global automobile manufacturer of cars, utility vehicles, pickups, trucks, and buses. The counter declined 2.19% to end at Rs 633.30 on the BSE.
India.com
2 days ago
- Automotive
- India.com
Bad news for Noel Tata, this company profit fell by 62% to Rs…, hit by lower…
Tata Motors on Friday reported a 62.2% year-on-year drop in consolidated net profit to Rs 4,003 crore for the June quarter, hit by lower volumes across segments, reduced profits at Jaguar Land Rover due to US tariffs, and a high base from gains on the sale of discontinued operations last year. In the April–June quarter of the previous fiscal, the auto major had posted a net profit of Rs 10,587 crore, the company said in a regulatory filing. Revenue from operations came in at Rs 1,04,407 crore, compared to Rs 1,07,102 crore in the same period last year. Tata Motors Q1 Results TML's performance in the quarter was impacted by volume decline in all businesses and a drop in profitability primarily at JLR, the company said. Following the amalgamation of Tata Motors Finance Ltd (TMFL) – a wholly-owned step down subsidiary of the company – into Tata Capital Ltd, the company had received equity shares of TCL amounting to Rs 8,016 crore over the book value of net assets transferred as at appointed date of April 1, 2024, amounting to Rs 4,975 crore as gain on sale of discontinued operation in consolidated results, the filing said. 'Despite stiff macro headwinds, the business delivered a profitable quarter, supported by strong fundamentals. As tariff clarity emerges and festive demand picks up, we are 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,' Tata Motors Group CFO PB Balaji said. How JLR Was Hit By US Tariffs? Addressing an earnings call, he said, 'In the current quarter, we (JLR) have got hit by almost 250 million pounds on (US) tariff charges because even though the deal (UK-US trade deal) was announced on May 8, it got ratified only on June 30, and it is not with retrospective effect.' Going forward, he said the correction for the reduction in tariffs from 27.5 per cent to 10 per cent under the US-UK trade deal and 27.5 per cent to 15 per cent, under the US-EU deal, along with the removal of the penalty for emission in the US will play through. 'Net impact is what we want to figure out a way to manage through the rest of the year,' he said, adding that while the US demand is holding up, China has introduced luxury tax on all imported vehicles and 'we have to figure out a way to manage that'. JLR revenues were down by 9.2 per cent to 6.6 billion pounds, impacted by significant new US trade tariffs on the UK and EU-produced cars exported to the US, and the planned legacy Jaguar wind-down. (With Inputs From PTI)
New Indian Express
2 days ago
- Automotive
- New Indian Express
Tata Motors' Q1 profit plunges 63 per cent over low sales
MUMBAI: Auto major Tata Motors on Friday reported a 62% decline in consolidated net profit of Rs 4,003 crore in the June quarter, from Rs 10,587 crore in the April-June quarter of the previous fiscal. 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.
Mint
2 days ago
- Automotive
- Mint
Tata Motors Q1 Results: Net profit drops 30.5% YoY to ₹3,924 crore; margins drop to multi-quarter low
Tata Motors, a leading global automobile manufacturer, reported its June quarter results today after market hours, posting a 30.5% YoY decline in consolidated net profit to ₹ 3,924 crore. The drop was driven by volume declines across all businesses and lower profitability at JLR, primarily impacted by US trade tariffs. In the preceding March quarter, the company had reported a net profit of ₹ 8,556 crore. However, the figure came in higher than analysts' average estimates of ₹ 3,672 crore, and consolidated revenue from operations stood at ₹ 1,03,792 crore, higher than estimated but a 2.45% drop compared to ₹ 1,06,399 crore in the year-ago quarter. At the operating level, EBITDA declined 35% YoY to ₹ 9,724 crore, with the margin falling to a multi-quarter low of 9.2%, down 480 basis points from 14% in the June 2024 quarter. Revenue growth at JLR, which accounts for about two-thirds of Tata Motors overall revenue, fell by 9.2% to £6.6 billion. The company said the performance during the quarter was impacted by the application of 27.5% US trade tariffs on UK- and EU-produced cars exported to the US, as well as the planned wind-down of legacy Jaguar vehicles ahead of the launch of new Jaguar models. The segment's PBT came in at £351 million, down 49.4% from £693 million a year ago, with an EBIT margin of 4.0%, down from 8.9% in Q1FY25. Looking ahead, the company remains optimistic that the UK-US trade deal, which will lower tariffs on UK-produced vehicles exported to the US from 27.5% to 10% effective 30 June 2025, along with the EU-US trade deal announced on 27 July 2025 that will gradually reduce tariffs on JLR's EU-produced vehicles exported to the US from 27.5% to 15%. The company has also maintained its EBIT margin guidance of 5% to 7% for FY26, factoring in the revised tariff rates. The revenue from the CV segment fell by 4.7% to ₹ 17,000 crore, but the business continued to deliver double-digit EBITDA margins of 12.2% and EBIT margins of 9.7% in Q1, aided by better realizations and material cost savings. The segment reported a PBT of ₹ 1,657 crore. "Q1 FY26 began on subdued note for the commercial vehicle industry with muted performance in the HCV and SCVPU segments while Buses, Vans, and ILMCVs registered modest YoY growth. Domestic volumes were down by 9% while exports were up by 68%," said the company. Passenger Vehicles segment recorded a revenue of ₹ 10,877 crore, down 8.2% due to a drop in volumes. The EBIT margins fell 310 basis points YoY to 2.8%. PBT was a loss of ₹ 129 crore, compared to a loss of ₹ 302 crore in the previous year, impacted by adverse volumes, realizations, and leverage effects but partly offset by continued savings in variable costs, as per the company's earnings filing. The company said the segment experienced volume pressures, particularly in May and June, with flat growth reflecting continued softness in demand. Wholesale volumes stood at 124.8K units, down 10.1%, due to an industry-wide decline and transitions to new models of Altroz, Harrier, and Safari, even as it continued to ensure controlled channel inventory growth.
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Business Standard
2 days ago
- Automotive
- Business Standard
Tata Motors Q1 results: PAT down 63% on JLR tariff hit, lower volumes
Tata Motors' Q1 profit after tax (PAT) fell 63 per cent to ₹3,924 crore, impacted by a decline in volumes across businesses and a drop in profitability, primarily at Jaguar Land Rover (JLR). Consolidated revenue fell 2.5 per cent to ₹1,04,407 crore as JLR revenue declined 9.2 per cent, commercial vehicle (CV) revenue fell 4.7 per cent, and passenger vehicle (PV) revenue declined 8.2 per cent, reflecting softness in industry demand. EBITDA margin contracted 480 basis points year-on-year to 9.2 per cent. The stock was down 2.19 per cent on the BSE as profit came in below analyst estimates, though revenue was in line with expectations. The company said the final hearing for the scheme of demerger had been concluded on Friday by the National Company Law Tribunal (NCLT), and the order is reserved. 'We aim to complete it this quarter, with 1 October being the effective date,' it said. Tata Motors noted that the demand environment is likely to remain challenging. PB Balaji, Group Chief Financial Officer, Tata Motors, said: 'As tariff clarity emerges and festive demand picks up, we are 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.' On the rare earth magnet shortage, Balaji clarified that there was no stress at present in either the domestic business or at JLR. 'We are working through the problems and we are confident,' he said. JLR revenue declined 9.2 per cent to £6.6 billion with EBIT margin at 4 per cent, down 490 basis points, impacted by US trade tariffs. Wholesale volumes and revenue were hit by the 27.5 per cent US tariffs on UK- and EU-produced vehicles exported to the US, and the planned wind-down of legacy Jaguar models ahead of new launches. CV revenue came in at ₹17,000 crore (down 4.7 per cent), while EBITDA margin improved to 12.2 per cent (+60 bps), supported by better realisations and cost savings despite lower volumes. PV revenue declined 8.2 per cent due to weak industry demand and the transition to new models. As a result, EBITDA margin for PV dropped 180 bps to 4 per cent. Despite these headwinds, consolidated profit before tax (PBT) before exceptional items stood at ₹5,600 crore, supported by a sharp reduction in finance costs, the company said. As for JLR, it delivered its eleventh consecutive profitable quarter amid challenging global economic conditions. Free cash flow was negative £758 million, with a cash balance of £3.3 billion. JLR plans to invest £18 billion over five years from 2024, funded by operating cash flows. Guidance for FY26 remains unchanged, with EBIT margin expected in the 5–7 per cent range and free cash flow projected to be close to zero. JLR welcomed the UK–US trade deal that lowers tariffs on UK-produced vehicles exported to the US from 27.5 per cent to 10 per cent, effective 30 June 2025. 'The EU–US trade deal announced on 27 July 2025 will, in due course, reduce tariffs on JLR's EU-produced vehicles exported to the US from 27.5 per cent to 15 per cent,' the company said. Q1FY26 began on a subdued note for the CV industry, with muted performance in the heavy CV and small CV passenger segments, while buses, vans, and intermediate and light CVs showed modest year-on-year growth. Domestic volumes declined 9 per cent, while exports grew 68 per cent. With forecasts of a healthy monsoon, a repo rate cut, and renewed infrastructure push, Tata Motors expects CV volumes to improve progressively in the coming quarters. Girish Wagh, Executive Director, Tata Motors, said: 'Despite adverse volumes, the business delivered 12.2 per cent EBITDA and a healthy ROCE of 40 per cent. The acquisition of IVECO Group is a strategic leap forward in our ambition to build a future-ready commercial vehicle ecosystem.' For the PV business, wholesale volumes fell 10.1 per cent to 1,24,800 units due to industry decline and transitions for the new Altroz, Harrier and Safari models. EV wholesales stood at 16,200 units (down 2.1 per cent), with EV penetration steady at 13 per cent and CNG penetration at 27 per cent. VAHAN market share stood at 12.3 per cent in Q1FY26, while EV market share was 36.7 per cent. Profitability in the PV segment was impacted by adverse volumes, realisations and operating leverage, though partly offset by continued efforts to reduce variable costs. Shailesh Chandra, Managing Director, Tata Motors PV and Tata Passenger Electric Mobility, said: 'Looking ahead, while the overall industry growth is expected to remain muted, we are confident that our recent and forthcoming series of launches—across ICE and EVs—will enable us to outperform the market and strengthen our position across key segments.'
