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United News of India
09-08-2025
- Automotive
- United News of India
Trump Tariff brings down Tata Motors Q1 FY26 net profit by 30 pc to Rs 3,924 crore
Mumbai, Aug 9 (UNI) Tata Motors has officially announced that it has posted a 30 per cent decline in its Q1 FY26 net profit of Rs 3,924 crore from the Rs 5,643 crore net profit reported in the same period last year. Tata Motors stated that its performance was impacted by decline in profitability primarily from its Jaguar Land Rover business, besides volume decline in all businesses. The company stated that US President Donald Trump's tariff impacted revenues from Jaguar Land Rover which declined by more than 9 per cent to £6.6 billion (UK pound sterling). Significantly, the United States is Jaguar Land Rover's most important export market, accounting for nearly a quarter of its sales. Operating profit from Jaguar Land Rover slipped by 49 per cent to 351 million pounds or Rs 4,130 crore in Q1FY26. Revenue at Jaguar Land Rover, which was acquired by Tata Motors in June 2008, also decreased by 10 per cent to 6.6 billion pounds or Rs 77,662 crore after it had to stop exports to the United States for nearly a month in April in response to tariffs imposed by US President Trump and phased out older Jaguar models primarily made in the United Kingdom (UK). However, despite the fall in revenue, Jaguar Land Rover has kept its guidance range for FY26 unchanged at 5 to 7 per cent. "Welcomed signing of UK-US trade deal to reduce tariffs on UK-produced vehicles exported to the US from 27.5 per cent to 10 per cent, effective from June 30, 2025. EU-US trade deal announced on July 27, 2025 will, in due course, reduce tariffs on Jaguar Land Rover's European Union-made vehicles exported to the US from 27.5 per cent to 15 per cent," the company stated. The revenue of Tata Motors from operations dropped by 2.5 per cent year-on-year to Rs 1.04 lakh crore in Q1 FY26, from Rs 1.07 lakh crore in Q1 FY25, while EBITDA declined 36 per cent year-on-year to Rs 9,700 crore. The company's commercial vehicle revenues declined by 4.7 per cent to Rs 17,000 crore, while EBITDA margins improved to 12.2 per cent, due to better realisations and cost savings despite lower volumes. Revenues from passenger vehicles declined by 8.2 per cent, reflecting decreased demand and transition to newer models. UNI XC BM
Time of India
08-08-2025
- Automotive
- Time of India
US duty bump jolts JLR, dents Tata Motors profit in Q1
MUMBAI: The profitability of Tata Motors ' cash cow, Jaguar Land Rover, was hit by tariffs imposed by US President Donald Trump, resulting in a 30% fall in the overall profitability of the Indian company. Outgoing JLR chief Adrian Mardell anticipates new trade deals signed between the US and the UK, effective June 30, and between EU and US, announced on July 27, reducing tariffs on UK-produced and EU-made vehicles exported to America from 27.5% to 10% and 15%, respectively, will lessen the financial impact of US tariffs on the business in following quarters. Operating profit of JLR slipped 49% to 351 million pounds or Rs 4,130 crore in Q1FY26. Revenue at JLR, acquired by Tata Motors in June 2008, also decreased by 10% to 6.6 billion pounds or Rs 77,662 crore as it ceased exports to the US for nearly a month in April in response to the tariffs imposed by Trump and phased out older Jaguar models primarily made in the UK. The US is the most important export market for JLR, accounting for nearly a quarter of its sales. These earnings come just eight days after JLR announced Mardell's exit from the company, where he has worked for 35 years and overseen its strongest profit in a decade. Incoming JLR CEO P B Balaji brushed off criticism from Trump, who accused JLR of being in "absolute turmoil" and labelled its recent marketing campaign as "stupid" and "woke". Despite this, JLR is standing by its new branding. Tata Motors' profit reduced to Rs 4,003 crore in Q1 FY26. Stay informed with the latest business news, updates on bank holidays , public holidays , current gold rate and silver price .
Mint
08-08-2025
- 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
08-08-2025
- 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.'
Time of India
24-07-2025
- Business
- Time of India
India-UK trade deal signed: Landmark multi-billion dollar free trade agreement sealed during PM Modi's visit; all about the FTA
India-UK Trade Deal (AI image) India-UK free trade deal: In a historic step, the India-UK free trade agreement (FTA) was signed in the presence of PM Narendra Modi and UK PM Keir Starmer. The trade deal which was agreed upon in May this year, was signed on Thursday during PM Modi's visit to the United Kingdom. The agreement has been finalized with an aim to enhance bilateral trade to $120 billion by 2030, effectively doubling the current trade volume between both nations. The free trade agreement signed today will help in facilitating reduced tariffs on exports of labour-intensive goods including leather, footwear and clothing, whilst reducing import duties on British whisky and automobiles. The trade agreement was formalised with Prime Minister Narendra Modi and British Prime Minister Keir Starmer in attendance, with Commerce and Industry Minister Piyush Goyal and British counterpart Jonathan Reynolds signing the document. The agreement requires the British Parliament's endorsement before implementation, a process anticipated to take approximately one year, according to a PTI report. India-UK Trade Deal: All About The FTA The agreement ensures that 99% of exports from India would receive duty-free access to British markets. Such bilateral trade arrangements typically involve both doing away with or substantially lowering customs duties on the majority of traded goods. Additionally, they aim to simplify regulations in order to encourage service trade and mutual investments. The India-UK FTA has sections addressing different aspects of trade; this includes goods, services, innovation, government procurement, and intellectual property rights. The FTA's key provisions include halving import duties on UK-produced whisky and gin from 150% to 75%to begin with, followed by a further decrease to 40% within a decade. Additionally, tariffs on automobiles will see a big reduction from over 100% to 10%. This is subject to quota restrictions. The agreement also aims to facilitate market access and cost-effective trade for businesses and Indian consumers via reduced import duties on various products. These include cosmetics, aerospace components, lamb, medical equipment, salmon, electrical machinery, soft drinks, chocolate and biscuits. The agreement will create export prospects for domestic sectors that employ substantial workforce, encompassing textiles, marine products, leather goods, footwear, sports equipment and toys, gems and jewellery, engineering products, automotive components and engines, alongside organic chemicals. The services component of the trade deal will facilitate the movement of diverse professionals, including independent professionals—such as yoga instructors, musicians, and chefs—business visitors, investors, contractual service suppliers, intra-corporate transferees, as well as their partners and dependent children who are granted the right to work. India and the UK have also finalized discussions on the Double Contribution Convention Agreement, which is also known as the social security agreement. This arrangement would mean that Indian professionals working temporarily in Britain will not have to make duplicate payments towards social security funds. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Villas For Sale in Dubai Might Surprise You Dubai villas | search ads Get Deals Undo India's exports to the UK saw a growth of 12.6% reaching $14.5 billion, whilst imports showed an increase of 2.3% to $8.6 billion in 2024-25. The trade volume between India and the UK expanded to $21.34 billion in 2023-24, showing an improvement from $20.36 billion in 2022-23. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
