2 weeks ago
Tata Motors Q1 profit plunges 80% as JLR, costs weigh
Tata Motors is a big car company from India, and it also owns Jaguar Land Rover (JLR), a famous luxury car brand.
In the last three months, the company made much less money than it did a year ago — its profit dropped by about 80 percent.
There were a few reasons for this.
Jaguar Land Rover sold fewer cars because it had trouble getting parts, including after a fire at one of its parts suppliers, and because of problems linked to a conflict in the Middle East.
It also stopped making some older Jaguar models to get ready for brand-new electric ones.
Making cars also cost more because raw materials became expensive and currency values changed.
But in India, Tata's own cars sold really well, with sales growing by 46 percent.
Electric car sales more than doubled, and electric cars are now 19 percent of Tata Motors' car sales in India.
The company says costs may keep going up next quarter, so it might raise car prices a little bit.
Articles differ slightly on the headline figure: one reports consolidated net profit falling 79% year-on-year to ₹859 crore, while another reports an 80% fall to ₹775 crore, 53% below the Bloomberg estimate of ₹1,665 crore.
Revenue from operations rose 9.3% year-on-year to ₹95,799 crore, above the Bloomberg estimate of ₹92,848 crore, but fell about 10% sequentially and the consolidated EBITDA margin contracted to 7.4%.
JLR, which contributes roughly two-thirds of Tata Motors' revenue, saw wholesale volumes fall about 9% to 87,300 units and revenue drop about 10% to £6 billion, hit by a supplier fire, Middle East market disruption and the planned wind-down of Jaguar models; Range Rover, Range Rover Sport and Defender accounted for 80.8% of its quarterly volume mix.
The India passenger-vehicle business was the bright spot: volumes rose 46% to 182,300 units, revenue jumped about 65% to ₹17,930 crore, and EV volumes surged 112% to over 34,000 units, lifting EV penetration to 19%.
Tata Motors expects commodity cost pressure to worsen in Q2, as commodity inflation already cut Q1 domestic margins by about 4.5% of revenue, potentially prompting further calibrated price hikes.
- Who
- Tata Motors (Tata Motors Passenger Vehicles) and its British subsidiary Jaguar Land Rover (JLR); officials quoted include Shailesh Chandra (MD & CEO, Tata Motors Passenger Vehicles), JLR chief executive P.B. Balaji and JLR chief financial officer Richard Molyneux.
- What
- An 80% plunge in consolidated net profit to around ₹775–859 crore for Q1 FY27, despite 9.3% revenue growth to ₹95,799 crore, as weak JLR results and higher costs offset strong growth in Tata Motors' India passenger-vehicle business.
- Where
- India, where Tata Motors' domestic passenger-vehicle business grew strongly; and the Middle East, where market disruption affected JLR sales. JLR production was also hit by a fire at a major component supplier.
- When
- Q1 FY27, the April–June quarter.
- Why
- Weaker JLR performance caused by temporary supply constraints — including a fire at a major component supplier — Middle East market disruption linked to the conflict, and the planned wind-down of Jaguar models ahead of new electric launches, along with higher commodity costs and adverse foreign-exchange movements.
Key facts
- Company
- Tata Motors
- Q1 FY27 Consolidated Net Profit
- ₹775–859 crore, down about 79–80% year-on-year (₹3,924 crore in Q1 FY26)
- Revenue from Operations
- ₹95,799 crore, up 9.3% year-on-year
- EBITDA Margin
- 7.4% (EBITDA of ₹6,176 crore)
- JLR Revenue
- £6 billion, down about 10% year-on-year
- JLR Profit Before Tax
- £109 million; EBIT margin of 2.8%
- India PV Volumes
- 182,300 units, up 46% year-on-year; revenue ₹17,930 crore, up about 65%
- EV Volumes and Penetration
- Over 34,000 units, up 112%; 19% of domestic portfolio
Quotes
Shailesh Chandra
Managing Director and CEO, Tata Motors Passenger Vehicles
“"JLR delivered first‑quarter profits (before tax) of £109 million and an adjusted EBIT (earnings before interest and tax) margin of 2.8%. 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."”
livemint.com
“"Q1 FY27 marked a strong start to the year for Tata Motors PV, with industry‑beating 46% YoY volume growth driven by robust customer demand and the success of our recent launches."”
financialexpress.com
Sources
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