Tata Motors Q1 profit plunges 80% as JLR, costs weigh

Consolidated profit after tax fell to ₹775 crore in Q1 FY27 from ₹3,924 crore a year ago, and was also below ₹5,783 crore in the March quarter. The reported profit was 53% below the Bloomberg estimate of ₹1,665 crore. Revenue from operations rose 9.3% year-on-year to ₹95,799 crore from ₹87,141 crore, but declined 10% sequentially from ₹1,04,923 crore. The top line was also above the Bloomberg estimate of ₹92,848 crore.

EBITDA increased 20% year-on-year to ₹6,176 crore, against the Bloomberg estimate of ₹6,373 crore. However, the consolidated EBITDA margin contracted to 7.4%, reflecting pressure from higher input costs, foreign exchange movements and weaker JLR performance.

On the other hand, domestic passenger vehicle business delivered strong growth during the quarter, with volumes rising 46% year-on-year, significantly ahead of the industry. Revenue jumped 64.8% to ₹17,930 crore.

Electric vehicle volumes surged 112% to more than 34,000 units, taking EV penetration in the domestic portfolio to 19%. CNG models accounted for 27% of the portfolio. Growth was supported by the company’s expanding EV range, new launches and improving demand following the easing of disruptions linked to the West Asia conflict.

“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,” said Shailesh Chandra, managing director and CEO, Tata Motors Passenger Vehicles.

Tata Motors PV expects commodity cost pressure to worsen in Q2, potentially prompting further calibrated price hikes. Commodity inflation impacted Q1 domestic margins by nearly 4.5% of revenue. Battery cell costs also rose 10% sequentially, putting additional pressure on EV margins as the company accelerates cost reduction measures.

JLR, which contributes around two-thirds of Tata Motors’ overall revenue, reported a 9.2% decline in wholesale volumes during the quarter. Revenue fell 9.6% year-on-year to £6 billion.

The performance was hit by temporary component supply constraints, including a fire at a major supplier, disruption in Middle East markets and the planned wind-down of outgoing Jaguar models ahead of the launch of the Jaguar Type 01.

JLR reported profit before tax before exceptional items of £109 million, with EBIT margin at 2.8%. Range Rover, Range Rover Sport and Defender accounted for 80.8% of its quarterly volume mix.

Back home, total consolidated expenses rose 12% year-on-year to ₹95,338 crore, faster than revenue growth. Higher raw material and commodity costs, exacerbated by elevated commodity prices amid tensions in the Middle East, added to the pressure on profitability.