Tata Motors Q1 FY26 Results: Revenue Slips 2.5% Amid JLR Tariff Impact, CV Margins Improve

Tata Motors Ltd. (TML) today announced its consolidated financial results for the quarter ended June 30, 2025, reporting a slight dip in revenue and profitability as global and domestic headwinds weighed on performance across business segments.

The automaker posted consolidated revenues of ₹104,400 crore, down 2.5% year-on-year, while EBITDA fell sharply by 35.8% to ₹9,700 crore. Consolidated EBIT stood at ₹4,500 crore, reflecting a margin of 4.3% — down 370 basis points. Profit Before Tax (before exceptional items) came in at ₹5,600 crore, supported by a significant reduction in finance costs.

JLR Performance Pressured by US Tariffs
Jaguar Land Rover (JLR) reported revenues of £6.6 billion, down 9.2%, with EBIT margins sliding 490 bps to 4.0% due to the adverse impact of US trade tariffs. EBITDA margins fell to 9.3%, down 650 bps from last year.

Commercial Vehicles Show Margin Resilience
Tata Commercial Vehicles (CV) revenues declined 4.7% to ₹17,000 crore, but the business delivered improved margins. EBITDA rose to 12.2% (up 60 bps) and EBIT to 9.7% (up 80 bps), aided by better realizations and cost-saving measures despite lower volumes.

Passenger Vehicles See Volume Softness
Tata Passenger Vehicles (PV) revenues fell 8.2% to ₹10,900 crore, reflecting industry demand softness and model transition effects. EBITDA margins dropped 180 bps to 4.0%, while EBIT turned negative at -2.8%.

Corporate Updates

• The NCLT has concluded the final hearing for the Tata Motors demerger, with the effective date targeted for October 1, 2025.
• On July 30, 2025, Tata Motors announced the 100% acquisition of Iveco Group N.V. (excluding Defence) via a €3.8 billion voluntary tender offer. The deal, subject to regulatory approvals, is expected to close in the first half of 2026, combining complementary capabilities and expanding global reach.

Outlook
Tata Motors expects demand conditions to remain challenging in the near term but aims to mitigate tariff impacts and improve contribution margins through a stronger product mix and operational efficiencies.

PB Balaji, Group CFO, 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 aim to accelerate performance and rebuild momentum across the portfolio.”