Tata Motors PV Q1FY27 profit skids 80% to ₹775 cr despite 9% rise in consolidated revenue to ₹95,799 cr

Tata Motors Passenger Vehicles Ltd (TMPV) reported an 80.3% year-on-year plunge in consolidated net profit to ₹775 crore in Q1FY27, from ₹3,924 crore a year earlier, as weaker Jaguar Land Rover (JLR) volumes and higher costs put pressure on the bottom line. Consolidated revenue from operations, however, rose 9.3% to ₹95,799 crore from ₹87,677 crore in the year-ago quarter.

The company’s consolidated EBITDA margin narrowed 130 basis points to 7.4%, while EBIT margin stood at 2.4%, down 90 basis points year-on-year. PBT before exceptional items came in at ₹1,606 crore. The quarter was marked by supply-chain disruptions, elevated commodity prices and adverse forex movements, alongside higher variable marketing expenses at JLR.

Dhiman Gupta, CFO, TMPVL, said the company had focused during the quarter on sustaining momentum in the domestic business while preparing JLR for an important transition year. He said supply constraints and elevated commodity and forex costs continued to affect performance, but added that the company was working on new launches, easing supply bottlenecks and taking targeted measures to improve margins.

At the operating level, the two key businesses moved in opposite directions. Tata PV sold 182,574 cars and SUVs during Q1 FY27, up 46% year-on-year, while JLR reported 79,300 wholesale units, down 9.2%. Taken together, the two businesses accounted for about 2.62 lakh units during the quarter.

JLR volumes decline 9.2%

JLR’s revenue declined 9.6% to £5.97 billion, with wholesale volumes falling 9.2% during the quarter. TMPV attributed the volume pressure to a fire at a major component supplier, disruption related to the Middle East conflict and the planned run-down of outgoing Jaguar models ahead of the Type 01 launch.

JLR’s EBITDA margin declined 120 basis points to 8.1%, while adjusted EBIT margin fell to 2.8% from 4%. Its profitability was also affected by retail variable marketing expenses, which increased to 7.1% from 4.1%. Despite the pressure, JLR remained profitable, with PBT before exceptional items at £109 million and PAT at £66 million.

P.B. Balaji, CEO, JLR, said the business continued to see demand for its brands despite the near-term challenges. He pointed to four upcoming products—Range Rover Electric, Range Rover Sport Electric, Range Rover GT and Jaguar Type 01—as important launches for the business in the coming months.

Tata PV volumes jump 46%, EV sales double

The domestic passenger vehicle business delivered a markedly stronger quarter, with volumes increasing 46% year-on-year and revenue surging 64.8% to ₹17,930 crore. EBITDA margin improved 30 basis points to 4.3%, while EBIT margin improved 230 basis points to -0.5%.

EV volumes more than doubled, rising 112% to over 34,000 units, with EV penetration reaching 19%. Tata PV retained a 14.3% Vahan market share and remained the EV market leader with a 39% share.

Shailesh Chandra, MD & CEO, Tata Motors Passenger Vehicles, stated, "The domestic business had benefited from strong customer demand and the response to recent launches." He also pointed to the company’s order book, product pipeline and margin-improvement initiatives, saying these should support continued growth and sequential improvement through the remainder of FY27.