Revenue from operations fell 2.5% YoY to Rs 1,03,792 crore in Q1 FY26, with performance impacted by volume decline in all businesses and a drop in profitability primarily at JLR.

Profit before tax (PBT) tumbled 59.6% to Rs 5,561 crore in Q1 June 2025 compared with Rs 13,765 crore in Q1 June 2024.

EBITDA stood at Rs 9,657 crore in Q1 FY26, registering de-growth of 35.75% compared with Rs 15,031 crore recorded in same quarter last year. EBITDA margin stood at 9.2% in Q1 FY26 as against 14% in Q1 FY25.

With the demand situation likely to remain challenging, the company said that it 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.

PB Balaji, group chief financial officer, 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.'

JLR revenues were down by 9.2% YoY to '6.6 billion in Q1 FY26 with EBIT margins at 4.0% (down 490 bps) affected by US trade tariff impact. Wholesale volumes & revenues in the quarter were impacted by the application of 27.5% US trade tariffs on UK- and EU-produced cars exported to the US, and the planned wind down of legacy Jaguar vehicles ahead of the launch of new Jaguar.

The company said that US trade tariffs also had a direct and material impact on profitability and cash flow in the period. The US-UK trade deal will significantly reduce the financial impact of US tariffs going forward.

On outlook front, the company said that it remains committed to executing its reimagine strategy and expect investment spend to remain at '18 billion over the five year period starting in 2024, funded by operating cash flows. Guidance for FY26 remains unchanged, with EBIT margin in the range of 5% to 7%, improving year-on-year for FY27 and FY28, and with FY26 free cash flow close to zero.

Adrian Mardell, JLR chief executive officer, said: 'Thanks to our talented people and the robust foundations we have built at JLR, we delivered an 11th successive profitable quarter amid challenging global economic conditions. We are grateful to the UK and US Governments for delivering at speed the new UK-US trade deal, which will lessen the significant US tariff impact in subsequent quarters, as will, in due course, the EU-US trade deal announced on 27 July 2025. Looking ahead, we remain focused on delivering our transformational Reimagine Strategy, including investing '3.8 billion this financial year to support the development of our next-generation vehicles, including our stunning new electric Range Rover and Jaguar models.'

Revenue from commercial vehicles fell 4.7% YoY to Rs 17,000 crore. Domestic volumes were down by 9% while exports were up by 68%. 'Q1 FY26 began on subdued note for the commercial vehicle industry with muted performance in the HCV and SCVPU segments while buses, vans, and ILMCVs registered modest YoY growth,' the company stated in regulatory filing.

Looking ahead, the company forecasts for a healthy monsoon across the country, reduction in repo rate and renewing thrust on infrastructure development, it expect volumes to improve progressively in the coming quarters. It remains focused on driving demand pull strategy and deepening customer engagement to deliver greater value and tailored solutions that help its customers grow their business. The business will continue to focus on double digit EBITDA delivery, higher ROCE and improve Vahan market shares in all segments by focusing on customer value proposition.

Girish Wagh, executive director Tata Motors, said: 'Q1 FY26 was a challenging quarter for the commercial vehicle industry, with subdued demand across key segments impacting overall performance. We also witnessed a decline in domestic sales volumes, reflecting broader market softness and delayed fleet replacement cycles, while segments like Buses and Vans showed resilience and our International Business delivered growth. Our commitment to product innovation and customer-centricity remained strong. The launch of the Ace Pro mini-truck in multiple powertrain options received encouraging initial market response, reaffirming our focus on delivering relevant and affordable mobility solutions. Despite adverse volumes, the business delivered 12.2% EBITDA and healthy ROCE of around 40%. The acquisition of IVECO Group is a strategic leap forward in our ambition to build a future-ready commercial vehicle ecosystem. By integrating the strengths of both organizations, we will be unlocking new avenues for operational excellence, product innovation and customer-centric solutions.'

Tata Passenger Vehicles reported 8.2% decline in revenue to Rs 10,900 crore in Q1 FY26. In Q1 FY26, wholesale volumes stood at 1,24,800 units (down 10.1%), on account of industry decline & transitions for new models of Altroz, Harrier & Safari, even as the company continued to ensure controlled channel inventory growth.

On outlook front, TaMo said that it had 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. Thus, while overall industry growth is expected to remain subdued, the company is well positioned to leverage its new launches' including hatchbacks and SUVs, while continuing to build on the EV momentum. It added that focus remains on improve profitability through key levers like aftersales transformation, leveraging technology and structural cost reduction.

Shailesh Chandra, managing director TMPV and TPEM said: 'Q1 FY26 was a subdued quarter for the passenger vehicle industry, with volume pressures persisting across most segments. Demand softness weighed on overall performance, although the electric vehicle category remained a bright spot, supported by new launches and growing customer interest. Our continued focus on customer engagement and portfolio renewal remained strong during the quarter. New launches'Altroz and Harrier.ev'received encouraging initial market response, with their full impact expected to unfold in the coming months. Looking ahead, while the overall industry growth is expected to remain muted, we are confident that our recent and forthcoming series of launches'across ICE and EVs'will enable us to outperform the market and strengthen our position across key segments.'

Finance costs decreased by Rs 533 crore to Rs 938 crore in Q1 FY26, contributed by reduction in gross debt.

For Q1 FY26, net profit from joint ventures and associates amounted to Rs 132 crore compared with Rs 129 crore in Q1 FY25. Other income (excluding grants) was Rs 729 crore in Q1 FY26 compared with Rs 768 crore in Q1 FY25.

Tata Motors, part of the Tata Group, is a global automobile manufacturer of cars, utility vehicles, pickups, trucks, and buses.

The counter jumped 2.95% to Rs 652 on the BSE.

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