Tata Motors Q1 Results: Cons profit plunges 63% YoY to Rs 3,924 crore, but beats Street estimates

Tata Motors on Friday reported a 63% decline in its Q1 consolidated net profit to Rs 3,924 crore, compared to Rs 10,514 crore in the year-ago period.

The profit attributable to shareholders was higher than Street estimates of Rs 3,408 crore.

The company’s total revenue from operations stood at Rs 1.04 lakh crore, down 0.3% from Rs 1.07 lakh crore reported in the corresponding quarter of the previous financial year.


The company said the demand environment is expected to remain challenging, and Tata Motors will focus on strengthening business fundamentals while mitigating tariff impacts through brand leverage, an improved product mix, and targeted actions to enhance contribution margins.

PAT declined 54% sequentially from Rs 8,470 crore in Q4FY25, while revenue fell 13% from Rs 1.19 lakh crore in the January–March quarter.

Tata Motors’ performance for the quarter was impacted by a volume decline across all businesses and a drop in profitability, primarily at Jaguar Land Rover (JLR).

The company’s Earnings Before Interest and Taxes (EBIT) stood at Rs 4,500 crore, with an EBIT margin of 4.3%, marking a decline of 370 basis points (bps).

Passenger Vehicles (PV):

Revenues declined by 8.2%, reflecting industry-wide softness and a transition to new models. As a result, EBITDA margin fell by 180 bps to 4%.

Commercial Vehicles (CV):

Revenues fell 4.7% to Rs 17,000 crore, but EBITDA margin improved by 60 bps to 12.2%, supported by better realizations and cost savings despite lower volumes.

Jaguar Land Rover (JLR):

JLR’s revenue dropped 9.2% to £6.6 billion, with EBIT margin at 4%—a decline of 490 bps—impacted by the US trade tariff.

JLR delivered its 11th successive profitable quarter amid challenging global economic conditions. Free cash flow for the quarter was £(758) million, with a cash balance of £3.3 billion.

The company welcomed the signing of the UK-US trade deal to reduce tariffs on UK-produced vehicles exported to the US from 27.5% to 10%, effective from 30 June 2025.

Management Commentary

Commenting on Tata Motors’ earnings, Group Chief Financial Officer P.B. Balaji said that despite stiff macroeconomic 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. Against the backdrop of the upcoming demerger in October 2025, our focus remains firmly on delivering a strong second-half performance,” he added.

Meanwhile, Adrian Mardell, Chief Executive of Jaguar Land Rover (JLR), noted that the company delivered its 11th consecutive profitable quarter, despite challenging global economic conditions.

“Looking ahead, we remain focused on executing our transformational Reimagine Strategy, including investing £3.8 billion this financial year to support the development of our next-generation vehicles—such as the stunning new electric Range Rover and Jaguar models,” he said.

He also expressed optimism that the EU-US trade deal announced on July 27 will likely mitigate the impact of significant US tariffs in subsequent quarters.