JLR disruption, higher raw material costs hit Tata Motors PV Q4 profit despite sales growth

Tata Motors Passenger Vehicles Ltd. (TMPVL) reported a sharp 71.4% year-on-year decline in standalone net profit to ₹455 crore for the March quarter of FY26, as up to 5% inflation in raw material costs and production disruptions at Jaguar Land Rover (JLR) following cyberattacks squeezed margins despite robust sales growth. The automaker’s standalone revenue from operations jumped 43% to ₹18,598 crore during the quarter, aided by record domestic passenger vehicle and EV volumes.

On a consolidated basis, Tata Motors Passenger Vehicles Group posted a 32% decline in net profit at ₹5,783 crore for Q4 FY26, compared with ₹8,470 crore in the year-ago period, even as revenue rose 7.2% year-on-year to ₹1.05 lakh crore. The company said JLR’s profitability remained under pressure from tariffs, adverse commodity prices, China market weakness and production stoppages linked to the cyber incident earlier in the fiscal.

The company’s consolidated EBITDA margin stood at 13.1%, while Tata PV’s standalone EBITDA margin improved 150 basis points to 9.4% on the back of operating leverage, favourable product mix and record quarterly sales. JLR’s revenue declined 11.1% year-on-year to £6.9 billion amid continued pressure from US tariffs, China market weakness and the after-effects of a cyber incident that disrupted production earlier in the fiscal.

JLR volume pressure amid disruption

In the fourth quarter, JLR sales were at 95,300 units compared with 1,11,400 units in the year-ago period, down 14.5%, according to TMPV’s investor presentation.

JLR CEO P.B. Balaji said, “JLR faced a challenging year with revenue and profit impacted by multiple headwinds, including a pause in production following the cyber incident. We recovered well in the fourth quarter as production returned to normal levels, demonstrating the commitment of our people, suppliers and retail partners.”

Domestic PV business powers growth

Tata passenger vehicles clocked revenue of ₹18,700 crore in Q4 FY26, up 49% YoY, supported by strong product mix and operating leverage. PV and EV volumes stood at 201,800 units in Q4 FY26, up 37% from the year-ago period, reflecting sustained momentum in SUVs and electrified offerings.

For the entire fiscal, the company crossed annual sales of 6.4 lakh units, clocking 15% growth and emerging as the second-largest passenger vehicle player in the second half of FY26. The automaker’s EV business continued to be a major growth engine, with annual EV volumes crossing 92,000 units, up 43% year-on-year.

TMPV managing director and CEO Shailesh Chandra said FY26 marked a “landmark year” for the company, driven by strong SUV demand, new product launches and rising EV adoption. He added, "The momentum was supported by launches such as the Sierra, Punch.ev and Harrier.ev, alongside expansion into international markets like South Africa."

Meanwhile, Tata Motors Passenger Vehicles (TMPV) is preparing a broad-based product offensive centred around the upcoming Sierra.ev and the Avinya range as it seeks to strengthen its foothold in India’s fast-growing Sport Utility Vehicle (SUV) market and retain leadership in the domestic electric car segment

JLR recovery underway amid global headwinds

JLR’s profitability remained under pressure during FY26 due to tariffs, adverse commodity prices, China luxury market weakness and production disruptions following the cyber incident. However, the luxury vehicle arm witnessed a sequential recovery in Q4 as production normalised.

TMPVL CFO Dhiman Gupta described FY26 as “a tale of two halves”, noting that while domestic demand remained resilient after GST 2.0 implementation, global operations faced multiple disruptions. He said the company would continue focusing on structural cost reductions and product interventions to offset geopolitical and commodity-related risks.

The board has recommended a final dividend of ₹3 per equity share for FY26, subject to shareholder approval.