Tata Group’s automotive arm, Tata Motors Passenger Vehicles, posted a sharp 80% year-on-year decline in its first-quarter net profit for the financial year 2027. The company’s consolidated net profit dropped to Rs 775 crore from Rs 3,924 crore reported in the year-ago period.
The decline came on the back of a drop in its Jaguar Land Rover sales and a rise in commodity prices caused by geopolitical tensions in the Middle East. However, the company’s total revenue from operations for the April-June quarter registered a 9% YoY growth at Rs 95,799 crore against Rs 87,677 crore reported in the same quarter last year.
On a sequential basis, the company’s net profit declined by a whopping 87% from Rs 5,783 crore reported in the preceding March quarter, while its revenue fell over 9% from Rs 105,447 crore reported in the trailing quarter.
“Volumes and revenue decreased in Q1, versus the prior quarter and prior year, having been affected by temporary
supply constraints, including a fire at a major component supplier at the start of the quarter, market disruption
linked to the conflict in the Middle East, and the planned wind down of outgoing Jaguar models ahead of the launch
of Jaguar Type 01,” the company said in its regulatory filing.
Tata Motors Passenger Vehicles reported its Q1 wholesales at 79.3k, down 9.2% YoY and down 16.8% QoQ.
EBITDA declines 130 points YoY
On the operational front, the company’s earnings before interest, tax, depreciation, and amortization (EBITDA) in Q1 FY27 were reported at 7.4%, falling 130 basis points from 8.7% reported in Q1 FY26. The automobile firm’s EBIT margins also contracted 90 basis points to 2.4% against 3.3% reported in the same quarter last year.
Commenting on the financial results, Dhiman Gupta, Chief Financial Officer of TMPVL, said, “Q1 FY27 was a quarter where we focused on carrying forward the growth momentum in the domestic business and preparing for an important transition year at JLR.”
He added, “Some of the challenges of FY26 i.e. supply constraints and elevated commodities / FX continued to impact performance in Q1 FY27. We delivered a resilient quarter and are confident to drive growth through new launches, debottleneck supply constraints, and take focused actions to deliver margin improvements.”
Tata Motors Passenger Vehicles share price
The company’s stock ended Thursday’s trade on the NSE at Rs 349.60, up 2% from its previous close. Over the past one month, its share price has advanced nearly 3%, while over the past six months it has declined around 8%.