Tata Motors Consolidated Q1 FY26 Results

Revenue ₹104.4K Cr (-2.5%), EBITDA at ₹9.7K Cr (-35.8%),
PBT (bei) ₹5.6K Cr (-₹3.2K Cr),  Auto FCF ₹-12.3K Cr (-₹13.0K Cr)

• JLR Revenue £6.6b down 9.2%, EBITDA at 9.3% (-650 bps), EBIT at 4.0% (-490 bps)
• Tata CV Revenue ₹17.0K Cr, down 4.7%, EBITDA at 12.2% (+60 bps), EBIT at 9.7% (+80 bps)
• Tata PV Revenue ₹10.9K Cr, down 8.2%, EBITDA at 4.0% (-180 bps), EBIT at -2.8% (-310 bps)

Tata Motors Ltd. (TML) announced its results for quarter ending June 30, 2025.

Tata Motors Consolidated:
TML performance in the quarter was impacted by volume decline in all businesses and a drop in profitability primarily at JLR. Revenues at ₹104.4K Cr (down 2.5%), EBIT of ₹4.5K Cr (- ₹4.1K Cr), EBIT margin of 4.3% (-370 bps). JLR revenues were down by 9.2% to £6.6b with EBIT margins of 4.0% (-490 bps) affected by US trade tariff impact. CV revenues were down by 4.7% to ₹17.0K Cr, while EBITDA margins improved to 12.2% (+60 bps) benefiting from better realizations and cost savings despite lower volumes. PV revenues declined by 8.2% reflecting softness in industry demand, and transition to new models. As a result, EBITDA at 4.0% down by 180 bps. Despite these challenges the consolidated PBT (bei) was ₹5.6K Cr benefiting from the sharp reduction in finance costs.

Corporate actions:

1. The final hearing for the scheme of demerger has been concluded today by NCLT and order is reserved; we aim to complete it this quarter with 01st October being the Effective Date
2. On 30 July 2025, TML announced the 100% acquisition of Iveco Group N.V. (excluding Defence) shares via Voluntary Tender Offer to all public shareholders bringing together complementary capabilities, global reach, and a shared strategic vision to drive long-term growth and unlock significant value. The Offer, valued Eur 3.8bn, is subject to obtaining the required clearances, and is expected to complete in the first half of 2026.

Looking Ahead:
With the demand situation likely to remain challenging, we will continue to focus on strengthening the business fundamentals and mitigate the impact of tariffs by leveraging the brand strength to drive a better mix, and targeted actions to improve contribution margins.

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. Against the backdrop of the upcoming demerger in October 2025, our focus remains firmly on delivering a strong second-half performance.”

JAGUAR LAND ROVER (JLR)

Highlights

• JLR delivers 11th successive profitable quarter amid challenging global economic conditions
• Q1FY26 Revenue at £6.6 billion (-9.2%) impacted by significant new US trade tariffs and planned legacy Jaguar wind down; EBITDA 9.3% (-650 bps)
• PBT was £351 million for Q1 , down 49.4% YoY, impacted by US tariffs and FX headwinds
• EBIT margin was 4.0%; guidance range of 5% to 7% for FY26 remains unchanged
• Free cash flow for the quarter was £(758) million, with a cash balance of £3.3 billion
• Total liquidity was £5.0 billion, including the £1.7 billion undrawn revolving credit facility
• Welcomed signing of 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
• EU-US trade deal announced on 27 July 2025 will, in due course, reduce tariffs on JLR’s EU-produced vehicles exported to US from 27.5% to 15%

Reimagine Transformation continues
Modern Luxury

• RR Electric prototypes driven for first time by media to critical acclaim, as waiting list surpasses 65,000
• RR SV Masāra & SV Saturio launched in India & Mexico respectively, with global launches of RR, RR Sport SV Black models
• Defender launches OCTA Black Edition, Defender Trophy competition & related Trophy Edition; Defender appointed official global automotive partner of Oasis Live ’25
• Discovery launched Tempest & Gemini Editions; Landmark and Metropolitan Editions introduced for Discovery Sport
• Jaguar Type 00 debuted at Goodwood (UK), Tokyo and Monaco, following reveals in Paris and Miami
• JLR affirms longstanding association with British Royal Family with grant of Queen’s Royal Warrant

Electrification / Sustainability

• JLR delivers over £100m of value from reuse & refurbishment initiatives as it transforms its industrial operations for electrification
• EDU and battery lines nearing completion at Electric Propulsion Manufacturing Centre, Wolverhampton UK, to produce electric vehicle components for next-generation electric vehicle

Financials

JLR’s revenue for the quarter was £6.6 billion, down 9.2% vs Q1 FY25. Wholesale volumes & revenues 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. US trade tariffs also had a direct and material impact on profitability and cash flow in the period. The US-UK trade deal will significantly reduce the financial impact of US tariffs going forward. PBT in the quarter was £351 million, down from £693 million a year ago with EBIT margin at 4.0%. The decrease in profitability YoY was impacted by the introduction of US tariffs and FX headwinds in the period.

Looking ahead

We remain focused on delivering our Reimagine Strategy and expect investment spend to remain at £18 billion over the five-year period starting in 2024, funded by operating cash flows. Guidance for FY26 remains unchanged, with EBIT margin in the range of 5% to 7%, improving year-on-year for FY27 and FY28, and with FY26 free cash flow close to zero.

Adrian Mardell, JLR Chief Executive Officer, said:
“Thanks to our talented people and the robust foundations we have built at JLR, we delivered an 11th successive profitable quarter amid challenging global economic conditions. We are grateful to the UK and US Governments for delivering at speed the new UK-US trade deal, which will lessen the significant US tariff impact in subsequent quarters, as will, in due course, the EU-US trade deal announced on 27 July 2025. Looking ahead, we remain focused on delivering our transformational Reimagine Strategy, including investing £3.8 billion this financial year to support the development of our next-generation vehicles, including our stunning new electric Range Rover and Jaguar models.”

TATA COMMERCIAL VEHICLES (TATA CV)

Highlights

• Q1 FY26 revenue at ₹ 17.0KCr (-4.7%), EBITDA 12.2% (+60 bps), EBIT 9.7% (+80 bps), PBT (bei) ₹ 1.7K Cr
• ROCE at 39.6% (37.7% in FY25)
• CV segment wholesales at 88.0K units (-6.0%).  Domestic volumes were down by 9% YoY, exports were up by 68%
• Domestic CV VAHAN market share at 36.1% in Q1 FY26. HGV+HMV 47.7%, MGV 35.9%, LGV 28.9%, Passenger 36.9%.
• Launched Ace Pro: India’s Most Affordable 4-Wheel Mini-Truck, heralding a new era in cargo mobility to empower India’s next wave of entrepreneurs
• Launched air conditioned cabins and cowls across Truck range, setting new benchmarks with smart upgrades designed to improve real-world performance
• Strengthened presence in Qatar with the launch of all-new LPO 1622 bus

Financials

Q1 FY26 began on subdued note for the commercial vehicle industry with muted performance in the HCV and SCVPU segments while Buses, Vans, and ILMCVs registered modest YoY growth. Domestic volumes were down by 9% while exports were up by 68%. Revenues were down by 4.7% to ₹ 17.0K Cr. The business continued to witness double digit EBITDA margins of 12.2% and EBIT margins of 9.7% in Q1 FY26, lead by better realizations and material cost savings and reported strong PBT (bei) of ₹ 1.7K Cr.

Looking ahead

With forecasts for a healthy monsoon across the country, reduction in repo rate and renewing thrust on infrastructure development, we expect volumes to improve progressively in the coming quarters. We remain focused on driving our demand-pull strategy and deepening customer engagement to deliver greater value and tailored solutions that help our customers grow their business. The business will continue to focus on double digit EBITDA delivery, higher ROCE and improve Vahan market shares in all segments by focusing on customer value proposition.

Girish Wagh, Executive Director Tata Motors Ltd said:
“Q1 FY26 was a challenging quarter for the commercial vehicle industry, with subdued demand across key segments impacting overall performance. We also witnessed a decline in domestic sales volumes, reflecting broader market softness and delayed fleet replacement cycles, while segments like Buses and Vans showed resilience and our International Business delivered growth. Our commitment to product innovation and customer-centricity remained strong. The launch of the Ace Pro mini-truck in multiple powertrain options received encouraging initial market response, reaffirming our focus on delivering relevant and affordable mobility solutions. Despite adverse volumes, the business delivered 12.2% EBITDA and healthy ROCE of ~40%.

The acquisition of IVECO Group is a strategic leap forward in our ambition to build a future-ready commercial vehicle ecosystem. By integrating the strengths of both organizations, we will be unlocking new avenues for operational excellence, product innovation and customer-centric solutions.”

TATA PASSENGER VEHICLES (TATA PV)

Highlights

• Q1 FY26 revenue at ₹ 10.9K Cr, (-8.2%), EBITDA 4.0% (-180 bps), EBIT -2.8% (-310 bps), PBT (bei) -₹0.1K Cr
• PV wholesales at 124.8K units (-10.1%). EV wholesales at 16.2K units (-2.1%)
• EV penetration steady at 13%. CNG penetration at 27% in Q1 FY26
• VAHAN registration market share at 12.3% in Q1 FY26. EV market share at 36.7%
• Delete—Impossible Harrier.ev unleashes a Bold New League of SUVs, 10,000 bookings on day 1
• Launched the All-New Altroz – Premium by Legacy, Modern by Design
• Introduced Lifetime HV Battery Warranty for Curvv.ev and Nexon.ev 45 kWh
• Tata Punch becomes India’s Fastest SUV to cross 6 lakh milestone in under 4 years

Financials

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, even as we continued to ensure controlled channel inventory growth. Revenues stood at ₹ 10.9K Cr (-8.2%) on account of drop in volumes. EBITDA margin was down by 180 bps YoY at 4.0% while EBIT margins declined by 310 bps YoY to (2.8)%. PBT(bei) was at ₹(129) Cr. Profitability was impacted as a result of adverse volumes, realizations and impact of leverage, but was offset in part by our continued drive on savings in variable costs.

Looking ahead

We have witnessed tailwinds towards the end of Q1 – Tiago and Altroz have seen 22% increase in bookings in June 25, while Harrier.ev launch has been extremely well received. Curated variants of Harrier & Safari have been launched at competitive price points. July month recorded highest-ever monthly EV sales, a significant milestone in the zero-emission journey. Thus, while overall industry growth is expected to remain subdued, Tata Motors is well positioned to leverage its new launches—including hatchbacks and SUVs, while continuing to build on the EV momentum. We continue our focus to improve profitability through key levers like aftersales transformation, leveraging technology and  structural cost reduction.

Shailesh Chandra, Managing Director TMPV and TPEM said:
“Q1 FY26 was 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. Our continued focus on customer engagement and portfolio renewal remained strong during the quarter. New launches—Altroz and Harrier.ev—received encouraging initial market response, with their full impact expected to unfold in the coming months. Looking ahead, while the overall industry growth is expected to remain muted, we are confident that our recent and forthcoming series of launches—across ICE and EVs—will enable us to outperform the market and strengthen our position across key segments.”

ADDITIONAL COMMENTARY ON FINANCIAL STATEMENTS

(CONSOLIDATED NUMBERS, IND AS)

FINANCE COSTS
Finance costs decreased by ₹533 Cr to ₹938 Cr in Q1 FY26, contributed by reduction in gross debt.

JOINT VENTURES, ASSOCIATES AND OTHER INCOME
For Q1 FY26, net profit from joint ventures and associates amounted to ₹132 Cr compared to ₹129 Cr in Q1 FY25. Other income (excluding grants) was ₹ 729 Cr in Q1 FY26 versus ₹ 768 Cr in Q1 FY25.

FREE CASH FLOWS
Free cash flow (automotive) for the quarter, was at negative ₹12.3K Cr primarily on account of adverse working capital due to seasonality & tariffs. Net automotive debt was at ₹13.5K Cr (including leases ₹9.5K Cr).