Tata Motors on August 8 reported a net profit of Rs 3,924 crore for the April-June quarter of the financial year 2026. This marks a 30 percent on-year drop from the Rs 5,643 crore net profit from continuing operations reported in the same period last year.
The drop in net profit was in-line with Moneycontrol poll of six brokerage firms.
The firm's revenue from operations meanwhile dropped 2.5 percent on-year to Rs 1.04 lakh crore in Q1 FY26, from Rs 1.07 lakh crore in Q1 FY25. Revenue however beat estimate, as brokerages polled by Moneycontrol had expected the firm's revenue to drop 8.7 percent.
EBITDA plunged 36 percent on-year to Rs 9,700 crore.
Trump tariff impact:
Tata Motors said its performance was impacted by volume decline in all businesses and a drop in profitability primarily at Jaguar Land Rover. The firm said Donald Trump’s tariff impacted the luxury automaker’s revenues, which were down over 9 percent to £6.6 billion, with EBIT margin declining 490 bps to 4 percent.
The firm's commercial vehicle revenues were down by 4.7 percent to Rs 17,000 crore, while EBITDA margins improved to 12.2 percent (+60 bps), benefiting from better realizations and cost savings despite lower volumes. Passenger vehicle revenues declined by 8.2 percent, reflecting softness in industry demand, and transition to new models.
Despite the fall in revenue, Jaguar Land Rover (JLR) has kept its guidance range for FY26 unchanged at of 5-7 percent. "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%," it added.
Update on Tata Motors demerger:
Speaking about the demerger of its PV and CV business, Tata Motors said that the final hearing for the scheme of demerger has been concluded by NCLT, and order is reserved. The automaker expects the demerger to be completed by the end of the ongoing quarter. The demerger is aimed to take effect from October 1.
The company noted that the quarter was subdued for both the segments, driven by softer demand.
'Demand situation likely to remain challenging'
"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," Tata Motors said in its exchange filing.
Speaking about the company's performance during the quarter, Tata Motors Group Chief Financial Officer PB Balaji 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."
The company released its results in the post market hours of August 8. The shares of the company closed over 2.4 percent lower during the day at Rs 630.80 apiece. The stock has declined 9 percent over the past one month, and nearly 16 percent in 2025 so far.
Also read: Manappuram Finance Q1 net profit tumbles 75% to Rs 138 crore, firm announces dividend
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