Tata Motors Passenger Vehicles reported a sharp fall in profit for the March quarter despite higher revenue, as multiple headwinds at its British luxury arm weighed on consolidated performance, the company said in a regulatory filing on Thursday.
Consolidated revenue rose 7.2 per cent year-on-year to Rs 1,05,447 crore in the quarter ended March, but profit attributable to shareholders declined 31.7 per cent to Rs 5,783 crore. Consolidated EBITDA slipped to Rs 13,851 crore from Rs 14,155 crore a year earlier, while the EBITDA margin narrowed to 13.1 per cent from 14.4 per cent.
For the full year FY26, consolidated revenue fell 8.3 per cent to Rs 3,35,582 crore, while profit before tax (before exceptional items) plunged to Rs 2,519 crore from Rs 28,650 crore a year ago. The company said profitability was hit by a cyber incident, higher tariffs, China’s luxury tax, elevated variable marketing expenses and adverse commodity costs at Jaguar Land Rover.
JLR revenue dropped 11.1 per cent in the March quarter to 6.9 billion pounds, with an EBIT margin of 9.2 per cent, as volumes and profitability were pressured by higher US tariffs, weak demand in China and the planned wind-down of outgoing Jaguar models ahead of a new launch. For FY26, JLR revenue declined 20.9 per cent to 22.9 billion pounds. The unit generated free cash flow of 829 million pounds in the quarter but reported a 2.2 billion pounds outflow for the full year, ending FY26 with 2.8 billion pounds in cash and total liquidity of 6.9 billion pounds.
“JLR faced a challenging year with revenue and profit impacted by multiple headwinds, including the cyber incident. We recovered well in the fourth quarter as production returned to normal levels,” said P.B. Balaji, chief executive officer. JLR plans to launch new products in FY27, including Range Rover Electric and a refreshed Jaguar line-up, while continuing its 18 billion pounds five-year investment plan from FY24, with potential reprioritisation depending on market conditions.
In contrast, the India passenger vehicle business posted strong growth. Tata Motors PV revenue surged 49.4 per cent year-on-year in the March quarter to Rs 18,742 crore, while FY26 revenue rose 20.7 per cent to Rs 58,465 crore. Quarterly EBITDA margin improved 150 basis points to 9.4 per cent, aided by higher volumes, favourable product mix, structural cost reductions and benefits under the government’s production-linked incentive scheme.
Passenger vehicle and electric vehicle volumes jumped 37 per cent year-on-year in the quarter to 2,01,800 units. The company recorded its highest-ever annual sales of over 6,40,000 units in FY26, up 15 per cent, nearly double the industry growth rate. EV wholesale volumes crossed 92,000 units, up 43 per cent, helping Tata Motors retain EV market leadership for the seventh consecutive year with about 40 per cent market share.
Looking ahead, Shailesh Chandra, managing director and CEO of TMPVL, said demand momentum continued through April and May and the company expects “industry-beating growth” in FY27, supported by new launches and higher production. He cautioned that geopolitical developments and commodity inflation—particularly in steel, copper, aluminium, rubber and petroleum-linked inputs—remain key risks, adding that the Middle East crisis has accelerated customer interest in EVs, boosting inquiries and bookings by 25–30 per cent.
The company said it would intensify cost-reduction measures, evaluate selective price hikes to protect margins and continue with a multi-powertrain strategy, noting that EVs and CNG vehicles together now account for 43 per cent of its overall volumes. |
