Tata Motors PV shares drop 6% as raw material cost weighs down Q1 earnings; key things investors should know

Tata Motors Passenger Vehicles (PV) shares declined around 6% during the morning market hours on Friday, August 14, as investors focused on the company’s fall in overall consolidated profits, contracting margins, and subdued revenue gains in the Jaguar Land Rover segment during the April to June quarter earnings for the financial year 2026-27.

NSE data showed that Tata Motors PV shares dropped around 6% to their early market low level of ₹329 apiece on Friday’s market, in comparison to ₹349.60 apiece at the previous equity market close.

After touching the early market low, the auto stock retracted some of its losses while trading 4.7% lower at ₹332.30 apiece during the morning hours on August 14.

How did Tata Motors perform in Q1 earnings?

On August 13, Tata Motors PV recorded an 80% drop in its consolidated net profit to ₹775 crore in the June quarter results, in comparison to ₹3,934 crore in the same period a year earlier.

Although the company’s revenues in the period under review advanced 9%, the overall rise in the automaker’s raw material costs by 76% in the June quarter weighed down the earnings in the period under review.

Investors were also focused on the margin contraction as the EBITDA margins dropped to 6.45% in the first quarter of FY27, in comparison to 9.31% in the same period a year earlier, as per the exchange filings.

The company management said that the automaker’s revenue growth was offset by the adverse foreign exchange rates and the commodity price movements in the global markets amid the West Asia conflict.

“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.

Jaguar revenue declines

Tata Motors PV-owned luxury vehicle manufacturer Jaguar Land Rover (JLR) posted a 9.6% YoY fall in its revenues to £6.0 billion in the period under review, in turn reflecting a 9.2% drop in the wholesale volumes.

The data further showed that the company’s PAT declined to £66 million in the June quarter, from £248 million in the corresponding quarter of the previous year. The company highlighted that the Q1 profits are registered against the backdrop of supply constraints and market disruption faced by the automaker.

“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, the CEO of JLR.

Looking ahead, the company management highlighted that the key focus will remain on monitoring the geopolitical situation and the demand trends in the luxury segment, while commodity prices are expected to remain elevated, impacting both the foreign and domestic business.

Tata Motors PV share performance

Tata Motors carried out a demerger of its commercial vehicles business and its passenger vehicle business back in October 2025. NSE data showed that Tata Motors PV shares have declined by 50% in the last one-year period, largely due to the corporate action.

However, so far in the calendar year 2026, Tata Motors PV shares have dropped 9.5% and were down 0.3% in the past one-month period. The exchange data showed that the auto stock was trading 4.2% lower in the last five market sessions.

Shares of Tata Motors dropped to their 52-week low of ₹294.30 apiece on March 30, 2026, while the 52-week high was at ₹739.70 apiece prior to the demerger move. The company’s market capitalisation (m-cap) was trading at over ₹1.22 lakh crore as of the trading session on Friday, August 14, 2026.