Tata Motors Q1 net profit dips 30% to ₹3,924 cr, hit by JLR tariffs, PV slowdown

Auto major Tata Motors has recorded a net profit of ₹3,924 crore for the April-June quarter of the financial year 2025-2026, a 30% drop on a year-on-year basis from the net profit of ₹5,643 crore in the year-ago period, according to the latest exchange filing by the Tata Group company. The quarterly performance was impacted by volume decline across all businesses and a drop in profitability, primarily at JLR, the company said.

Tata Motors' revenue also dropped 2.5% YoY to ₹1.04 lakh crore in the said period from ₹1.07 lakh crore in the year-ago period, while the earnings before Interest, Taxes, Depreciation, and Amortisation (EBITDA) stood at ₹9,700 crore, a 36% drop YoY. The EBITDA margin for the quarter dipped 480 bps to 9.2%.

Tata Motors says Jaguar Land Rover (JLR) revenues were down by 9.2% to £6.6b, with EBIT margins of 4% (-490 bps) affected by US trade tariff impact. JLR saw its EBITDA take a hit of 490 bps to 9.3%. Wholesale volumes & revenues of JLR 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 says the US trade tariffs also had a direct and material impact on profitability and cash flow in the period. Tata Motors says the US-UK trade deal is expected to "significantly reduce" the financial impact of US tariffs on JLR going forward.

Segment-wise, the commercial vehicles revenues were down by 4.7% to ₹17,000 crore, while EBITDA margins improved to 12.2% (+60 bps), benefiting from better realisations and cost savings despite lower volumes.

Tata Motors says PV revenues declined by 8.2% to ₹10,887 crore, reflecting softness in industry demand and transition to new models. As a result, EBITDA at 4% dipped by 180 bps. The company says Tata Motors' profitability was impacted as a result of adverse volumes, realisations and impact of leverage, but was offset in part by our continued drive on savings in variable costs.

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.”

According to the company, the PV industry in Q1 FY26 experienced volume pressures, particularly in May and June, with flat growth reflecting continued softness in demand. In Q1 FY26, wholesale volumes stood at 124.8K units (-10.1%), on account of industry decline & transitions for new models of Altroz, Harrier & Safari.

Shailesh Chandra, Managing Director of TMPV and TPEM, termed Q1 FY26 as 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."

Chandra says looking ahead, while the overall industry growth is expected to remain "muted", Tata Motors' recent and forthcoming series of launches—across ICE and EVs—will enable it to outperform the market.

Shares of Tata Motors closed 2.19% down at ₹633.30 on Friday.