Tata Motors Passenger Vehicles Q1 net profit plunges 78.54% to ₹859 cr

Tata Motors Passenger Vehicles on Thursday reported a 78.54 per cent decline in net profit to Rs 859 crore in the June quarter amid supply chain headwinds and persistent commodity pressure.

The company had posted a net profit of Rs 4,003 crore in Q1FY26, according to a statement.

Total revenue from operations for the reporting quarter, however, rose 9 per cent year-on-year to Rs 95,799 crore from Rs 87,677 crore in the first quarter of the preceding fiscal.

During the quarter under review, JLR wholesales dropped 9.2 per cent year-on-year on account of temporary supply constraints, including a fire at a key component supplier, West Asia conflict and planned Jaguar wind-down, the company said.

 

In addition to the impact of reduced volumes, JLR's YoY profitability was impacted as VMEs continued to remain elevated, partially offset by favourable structural costs.

The domestic business delivered a strong revenue growth of 65 per cent YoY. However, elevated commodities and Forex moderated improvement in margins, it said.

Implications from global geopolitical developments and luxury segment trends continue to be key monitorable, according to the company.

For Jaguar Land Rover, this remains an exciting year as it expands its portfolio into BEVs with the expected launch of four new products in the coming months, the company said, adding that on the domestic front, while commodities are expected to remain elevated, demand remains healthy with rising EV penetration, the automaker said.

The business will focus on revenue growth whilst remaining prudent with increased focus on cost reductions and calibrated price actions, it said.

"Q1 FY27 was a quarter where we focused on carrying forward the growth momentum in the domestic business and preparing for an important transition year at JLR. Some of the challenges of FY26, such as supply constraints and elevated commodities/Forex, continued to impact performance in Q1 FY27. We delivered a resilient quarter and are confident to drive growth through new launches, debottleneck supply constraints and take focused actions to deliver margin improvements," said Dhiman Gupta, Chief Financial Officer, TMPVL.

Tata Motors PV volumes grew 46 per cent YoY, significantly outperforming the industry, while EV volumes grew by 112 per cent YoY, backed by the company's comprehensive portfolio, new launches and leveraging demand growth post West Asia conflict, it said.

According to the company, the impact of strong revenue growth was partially diluted by adverse Forex and commodities.

The company said with Vahan market share at 14.3 per cent, it retained the Number 2 position in the first quarter of FY27, and added that EV Vahan market share was seen steady at 39 per cent, maintaining the company's industry leadership position.

"JLR delivered first quarter profits of 109m and an adjusted Ebit margin of 2.8 per cent. Despite the near-term industry challenges, we continue to see strong demand for our brands and look forward to the launch of four sensational new products in the coming months," said PB Balaji, Chief Executive Officer.

"Q1 FY27 marked a strong start to the year for Tata Motors PV, with industry-beating 46 per cent YoY volume growth driven by robust customer demand and the success of our recent launches. Our leadership in electric mobility strengthened further, with record quarterly EV volumes of over 34,000 units and 112 per cent YoY growth," said Shailesh Chandra, Managing Director & CEO, Tata Motors Passenger Vehicles Limited.

The new avatars of Tiago and Punch have received a strong response, with robust bookings across powertrains, reinforcing the strength of the company's multi-powertrain strategy, he said.

"In Q1 FY27 we delivered a resilient financial performance while being impacted on account of elevated levels of commodity and forex. Supported by a strong order book, exciting product pipeline, sustained demand, and focused margin improvement initiatives, we remain confident of maintaining growth momentum and delivering sequential improvement through the rest of the year," he added.