Tata Motors Q1 results: Net profit declines 30% to ₹3,924 crore, EBITDA falls 33%

Tata Motors, the parent of luxury car maker Jaguar Land Rover (JLR) and country's largest commercial vehicle maker, on Friday, August 8, reported a consolidated net profit of ₹3,924 crore in the first quarter of current financial year (Q1FY26), marking a decline of 30% from ₹5,643 crore in the same period last year.

Tata Motors' revenue from operations declined 2.5% to ₹1.04 lakh crore in April-June period from ₹1.07 lakh crore in the year-ago period.

The company's operating profit declined 33% to ₹10,224 crore and its operating profit margin contracted to 9.79%.

Tata Motors performance in first quarter was impacted by volume decline in all businesses and a drop in profitability primarily at JLR, the company said. JLR revenues were down by 9.2% to £6.6 billion with EBIT margins of 4.0% (-490 bps) affected by US trade tariff impact.

"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.

“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,” said PB Balaji, Group Chief Financial Officer, Tata Motors.

Tata Motors passenger vehicle business clocked revenue of ₹10,900 crore with EBITDA margin of 4%. During the quarter, its passenger vehicle wholesales declined 10% annually to 1,24,800 units and electric vehicle sales fell 2.1% to 16,200 units. The company had VAHAN registration market share of 12.3% and EV market share of 36.7%.

"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," Tata Motors said.

"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," the Mumbai-based auto company said.

Tata Motors shares ended 2.19% lower at ₹633 ahead of earnings announcement.