Why Did Tata Motors' Net Profit Fall 63% YoY to Rs 4,003 Cr in Q1?
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Synopsis
Tata Motors' net profit has seen a drastic fall, down 63% YoY to Rs 4,003 crore in the first quarter of FY26. This decline is attributed to several factors including reduced volumes and profitability at Jaguar Land Rover. Despite these challenges, the company remains optimistic about future growth prospects.
Key Takeaways
- Tata Motors' Q1 FY26 profit fell to Rs 4,003 crore, down 62% YoY.
- Jaguar Land Rover's profitability was notably affected.
- Total income decreased to Rs 1.05 lakh crore.
- Company aims for a strong second half amid challenges.
- Recent acquisition of Iveco Group to bolster growth.
New Delhi, Aug 8 (NationPress) Tata Motors Limited's (TML) net profit for the first quarter of the financial year 2026 (Q1 FY26) was recorded at Rs 4,003 crore, marking a significant decline of 62 percent year-on-year (YoY), as indicated in an exchange filing on Friday.
In the same quarter of the previous year (Q1 FY25), the automobile giant had reported a consolidated net profit of Rs 10,597 crore. The profit also experienced a dip of over 50 percent sequentially from Rs 8,556 crore in the prior quarter.
For the April-June period, the company's total income was Rs 1.05 lakh crore, reflecting a slight decrease from Rs 1.08 lakh crore in Q1 FY25. Income also fell sequentially from Rs 1.21 lakh crore in Q4 FY25.
Total expenses for Q1 FY26 were Rs 1 lakh crore, slightly up from Rs 99.89 thousand crore reported in the same quarter last year. However, expenses decreased sequentially compared to Rs 1.09 lakh crore in Q4 FY25.
The company's performance this quarter was hindered by a decline in volumes across all segments and a drop in profitability, notably at Jaguar Land Rover (JLR), as per the filing.
JLR's revenues fell by 9.2 percent to 6.6 billion euros, with an EBIT margin of 4 percent, impacted by US trade tariffs.
On July 30, 2025, TML announced the full acquisition of Iveco Group N.V. (excluding Defence) through a Voluntary Tender Offer for all public shareholders, aiming to combine complementary capabilities and global reach for long-term growth and value creation.
“Despite challenging macroeconomic conditions, the business delivered a profitable quarter, backed by solid fundamentals,” stated Tata Motors' Group Chief Financial Officer, P.B. Balaji.
“As tariff clarity improves and festive demand rises, we are poised to enhance performance and regain momentum across our portfolio. With the upcoming demerger in October 2025, our focus remains on achieving a strong second half,” Balaji added.
Point of View
Tata Motors is currently facing significant challenges that have led to a sharp decline in net profit. As the company navigates these turbulent waters, the focus will be on how effectively they adapt to changing market conditions and leverage strategic acquisitions to boost their performance in the upcoming quarters.
NationPress
19/08/2025
Frequently Asked Questions
What caused Tata Motors' profit decline?
The profit decline was primarily due to volume reduction across all businesses and decreased profitability at Jaguar Land Rover (JLR), along with the impact of US trade tariffs.
How much did Tata Motors' net profit decrease?
Tata Motors' net profit decreased by 62% year-on-year, standing at Rs 4,003 crore for Q1 FY26.
What were the total expenses for Tata Motors in Q1 FY26?
Total expenses for Q1 FY26 were Rs 1 lakh crore, slightly higher than the previous year.
What is the outlook for Tata Motors moving forward?
The company aims to improve performance as market conditions stabilize and festive demand increases, focusing on a strong second-half performance.
What strategic move did Tata Motors recently make?
Tata Motors announced the full acquisition of Iveco Group N.V. to enhance its capabilities and drive long-term growth.
