Synopsis:
Tata Motors Q1 FY26 saw revenue and profit declines from lower volumes and JLR tariff impacts; CV margins improved, demerger nears completion, and FY26 guidance remains unchanged amid demand challenges.
During Monday’s trading session, shares of a leading global automobile manufacturer are in focus on the stock exchanges. This article explores the company’s Q1 FY26 results and other significant developments.
At 11:18 a.m., the shares of Tata Motors Limited were trading in the green at Rs. 649.9 on BSE, up by around 3 percent, as against its previous closing price of Rs. 633.30, with a market cap of Rs. 2.39 lakh crores. The stock has delivered negative returns of around 39 percent in the last one year, and has fallen by over 4 percent in the last one month.
What’s the News
Tata Motors Limited (TML) announced the financial results for Q1 FY26 on Friday after market hours, according to the latest regulatory filings on the stock exchanges.
For Q1 FY26, Tata Motors reported a consolidated revenue from operations of Rs. 1,04,407 crores, down by around 13 percent QoQ from Rs. 1,19,503 crores in Q4 FY25 and 2.5 percent from Rs. 1,07,102 crores recorded in Q1 FY25.
Net profit for the quarter stood at Rs. 4,003 crores, marking a marginal decline of around 53 percent QoQ from Rs. 8,556 crores in Q4 FY25, as well as a year-on-year decrease of about 62 percent from Rs. 10,587 crores in Q1 FY25.
Performance was weighed down by lower volumes across all businesses and reduced profitability, particularly at Jaguar Land Rover (JLR). JLR revenues declined by 9.2 percent to £6.6 billion, with EBIT margins of 4 percent (down 490 bps), impacted by the US trade tariffs.
In the commercial vehicles (CV) segment, revenues slipped by 4.7 percent to Rs. 17,000 crores, though EBITDA margins improved to 12.2 percent (+60 bps) on the back of better realisations and cost savings despite lower volumes. Passenger vehicle (PV) revenues fell 8.2 percent, reflecting industry softness in industry demand and transition to new models, leading to an EBITDA margin of 4 percent (down 180 bps).
On the corporate front, the final hearing for its commercial vehicles business demerger has concluded at the NCLT, with the order reserved; TML aims to complete the process this quarter, with 1st October set as the effective date.
Looking ahead, TML expects demand challenges to persist and plans to strengthen business fundamentals, mitigate tariff impacts through a stronger product mix, and improve contribution margins.
Meanwhile, at JLR, the company remains committed to its “Reimagine” strategy, with a planned investment of £18 billion over 5 years (from 2024), funded by operating cash flows. FY26 guidance remains unchanged, with an EBIT margin target of 5-7 percent, improving year-on-year for FY27 and FY28, and FY26 free cash flow close to zero.
During the quarter, JLR welcomed the signing of the UK-US trade deal (effective 30th June 2025), to reduce tariffs on UK-produced vehicles exported to the US from 27.5 percent to 10 percent, and the EU-US trade deal (announced on 27 July 2025) will reduce tariffs on JLR’s EU-produced vehicles exported to the US from 27.5 percent to 15 percent.
Tata Motors Limited is engaged in the business of designing, manufacturing, and selling a wide range of automotive vehicles. Additionally, the company manufactures engines for industrial applications, aggregates such as axles and transmissions for commercial vehicle,s and factory automation equipment, and provides information technology services.
Written by Shivani Singh
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