Tata Motors PV's Shailesh Chandra says capex, strategy to stay unchanged as Chandrasekaran exits Tata Sons

Tata Motors Passenger Vehicles (TMPV) will remain fully focused on driving growth and creating sustained value for its stakeholders, and its capex plans will remain unaffected by the imminent change in leadership at Tata Sons, Managing Director and CEO Shailesh Chandra said on Thursday.

"Tata Motors (Passenger Vehicles) has a clear strategy and a strong management team focused on execution. The company operates through a robust governance process and long-term strategic plans," Chandra said on an earnings call.

Also read: Chandra bows out: Tata Sons Chairman to exit after nearly a decade


He was responding to a question on whether the upcoming leadership change at Tata Sons, the promoter holding company of the Tata Group, would impact TMPV's future plans or direction. On Wednesday, Tata Sons Chairman N Chandrasekaran, who is also the non-executive Chairperson of TMPV, announced that he would step down as chairman when his current term ends on February 20, 2027, and would not seek another term.

"We remain fully focused on driving growth and creating sustained value for our stakeholders. I have already confirmed that our capex plans and all are not going to change," Chandra said.

In June this year, TMPV had announced capex of up to ₹40,000 crore over the next five years as it targets a 20% share of the domestic market by nearly doubling its volumes to over 12 lakh units annually by FY31. The company plans to launch six new models by FY31 while aiming for 13 lakh units of annual production capacity within two to three years.

Q1 FY27 financial performance

The remarks came as TMPV announced its results for the quarter ended June 30, 2026. Consolidated revenue stood at ₹95,799 crore, up 9.3% YoY, while EBITDA margin came in at 7.4%, down 130 basis points, and EBIT margin at 2.4%, down 90 basis points.

Consolidated PBT (before exceptional items) was ₹1,606 crore, a decline of ₹2,344 crore YoY, while PAT stood at ₹900 crore. Free cash flow was negative at ₹11,800 crore, largely on account of seasonal working capital impact, taking net debt to ₹42,200 crore.

Jaguar Land Rover (JLR) revenue fell 9.6% YoY to £5,973 million (around £6.0 billion), with wholesale volumes down 9.2% due to temporary supply constraints, including a fire at a key component supplier, disruption linked to the Middle East conflict, and the planned wind-down of outgoing Jaguar models ahead of the Jaguar Type 01 launch.

PBT (before exceptional items) fell 68.9% YoY to £109 million, while PAT declined to £66 million from £248 million a year earlier.

Tata Passenger Vehicles delivered a stronger quarter, with revenue growing 64.8% YoY to ₹17,930 crore. Volumes rose 46% YoY, outperforming the industry, while EV volumes grew 112% YoY on the back of new launches and demand growth following the West Asia conflict.

Also read: ET Graphics | Decoding Chandra era: How Tata's market value tripled in 10 years

EBITDA margin improved to 4.3%, up 30 basis points YoY, and EBIT margin improved to -0.5%, up 230 basis points YoY. PBT (before exceptional items) was at breakeven, compared with a loss of ₹10 crore in the year-ago quarter, while free cash flow stood at ₹1,100 crore.

Tata PV held a 14.3% Vahan market share, retaining the number two position, with EV Vahan market share steady at 39%.

Commenting on the results, Chandra said the quarter marked a strong start to the year for Tata Motors PV, citing industry-beating volume growth and record quarterly EV volumes of over 34,000 units.

He added that while supply constraints affected Sierra volumes during the quarter, customer interest in the Sierra.ev remained strong, and the company remained confident of sustaining growth momentum through the rest of the year.

With inputs from PTI