Tata Motors PV Q1 FY27 results: Net profit declines 80%; JLR revenue drops to £6.0 billion YoY

The carmaker's total revenue from operations, however, grew 9% year-on-year (YoY) to ₹95,799 crore in Q1 FY27 from ₹87,677 crore in the year-ago period.

The company’s operating profit, also known as earnings before interest, taxes, depreciation, and amortisation (EBITDA), slipped 24% YoY to ₹6,176 crore as compared to ₹8,162 crore in the corresponding period of the previous financial year.

Its operating profit margin, also known as EBITDA margin, contracted to 6.45% in the reporting quarter from 9.31% in the year-ago period.

Tata Motors said its passenger vehicle (PV) volumes grew 46% annually in Q1 FY27, significantly outperforming the industry. The electric vehicle (EV) volumes rose 112% YoY, supported by its comprehensive portfolio, new launches and demand growth following the West Asia conflict.

The company said the impact of strong revenue growth was partially diluted by adverse foreign exchange and commodity movements. Its closing cash balance stood at ₹10,900 crore at the end of Q1 FY27, while gross debt was ₹2,900 crore, resulting in net cash of ₹8,000 crore.

“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 i.e. supply constraints and elevated commodities/FX, continued to impact performance in Q1 FY27,” said Dhiman Gupta, Chief Financial Officer, Tata Motors PV.

“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,” added Gupta.

On a standalone basis, the carmaker’s net profit came in at ₹75 crore in Q1 FY27 as compared to ₹5,266 crore on a yearly basis. Its revenue from operations jumped 59% to ₹17,535 crore while EBITA stood at ₹445 crore during the quarter.

JLR updates

Jaguar Land Rover (JLR) reported revenue of £6.0 billion in Q1 FY27, down 9.6% YoY, reflecting a 9.2% decline in wholesale volumes. The model mix of Range Rover, Range Rover Sport and Defender improved to 80.8% in Q1 FY27 from 77.2% a year earlier.

Its profit after tax (PAT) stood at £66 million for Q1 FY27, compared with £248 million in the same quarter last year. The company said the first quarter remained profitable despite supply constraints and market disruption faced by the business.

JLR’s wholesales were down 9.2% YoY on account of temporary supply constraints, including a fire at a key component supplier, Middle east conflict and planned Jaguar wind-down.

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 company said. However, the domestic business delivered a strong revenue growth of 65% YoY, while elevated commodities and forex moderated improvement in margins, it added.  

“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: Range Rover Electric, Range Rover Sport Electric, Range Rover GT and Jaguar Type 01,” said JLR CEO PB Balaji.

Outlook

Tata Motors PV said global geopolitical developments and trends in the luxury segment would continue to be key monitorables. The company added that JLR is expected to launch four new BEV products in the coming months.

In the domestic market, it said commodities are expected to remain elevated while demand remains healthy with rising EV penetration, and that the business will focus on revenue growth, cost reductions and calibrated price actions.

“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,” said Shailesh Chandra, Managing Director & CEO, Tata Motors Passenger Vehicles.

On Thursday, Tata Motors PV shares closed at ₹349.60 apiece on the National Stock Exchange, gaining 1.92%. The earnings, however, came after the market hours