Tata Motors Q1FY26 Results: Revenue Down 2.5%, JLR Hit by Tariffs

Tata Motors has announced its Q1 FY26 results for the quarter ended June 30, 2025, showcasing a mixed performance across segments. While strategic steps like the Iveco acquisition and business demerger show long-term promise, challenges in key markets have weighed on profitability this quarter.

Mixed Financial Performance Amid Global and Domestic Pressures

Consolidated revenue stood at ₹1,04,400 crore, down 2.5% YoY. EBITDA fell 35.8% to ₹9,700 crore, leading to a margin of 9.2%. However, PBT (before exceptional items) improved to ₹5,617 crore from a loss of ₹3,232 crore in Q1FY25. Automotive free cash flow remained negative at -₹12,300 crore, largely due to adverse working capital and soft demand conditions.

Segment Highlights: JLR, CV, and PV Units Show Diverging Trends

Jaguar Land Rover posted revenue of £6.6 billion, down 9.2% YoY, with EBIT margin at 4.0% % (-490 bps) affected by US trade tariff impact. However, the guidance range of 5% to 7% for FY26 remains unchanged. CV revenues were down by 4.7% to ₹17.0K Cr, while EBITDA margins improved to 12.2% (+60 bps), benefiting from better realisations and cost savings despite lower volumes. PV revenues declined by 8.2% reflecting softness in industry demand and transition to new models. As a result, EBITDA at 4.0% down by 180 bps. 

Welcomed the signing of the UK-US trade deal to reduce tariffs on UK-produced vehicles exported to the US from 27.5% to 10%, effective from 30 June 2025. The EU-US trade deal announced on 27 July 2025 will, in due course, reduce tariffs on JLR’s EU-produced vehicles exported to the US from 27.5% to 15%

 The segment was impacted by 27.5% US tariffs on UK- and EU-made vehicles, leading to added costs of ₹2,904 crore (£254 million). A new UK-US trade deal reducing tariffs to 10% from June 30, 2025, brings optimism for the coming quarters.

Tata Commercial Vehicles saw revenue fall 4.7% to ₹17,000 crore, though margins improved. EBITDA margin rose to 12.2% and EBIT margin to 9.7%. Domestic volumes declined to 88,000 units, with a market share of 36.1% in the VAHAN CV segment.

Passenger Vehicle business reported revenue of ₹10,900 crore, down 8.2%, with volumes falling 10.1% to 1,24,800 units. EBITDA margin dropped to 4.0%, and EBIT stood at -2.8%. EV volumes reached 16,200 units, with 13% penetration.

Read More: Tata Motors Reports 11% Drop in July 2025 Sales, But EVs Continue To Shine Bright!

Tata Punch Becomes India’s Fastest SUV to cross 6 lakh Milestone

New launches included Harrier.ev with 10,000 bookings on day 1. Launched the All-New Altroz Premium by Legacy, Modern by Design. Tata Punch crossed 6,00,000 units in under 4 years. EV share rose to 36.7% in passenger vehicles. 

Tata Motors Share Price Performance

On August 8, 2025, Tata Motors share price opened at ₹647.95 on NSE, above the previous close of ₹646.50. During the day, it surged to ₹652.95 and dipped to ₹630.00. The stock closed at ₹633.70 by the end of the day. The stock registered a decline of 1.98%.

Over the past week, it has declined by 3.04%, over the past month, it has declined by 7.05%, and over the past 3 months, it has declined by 6.40%.

Conclusion

While Tata Motors faces macroeconomic headwinds, the company continues to reposition through strategic acquisitions, regulatory readiness, and EV innovation. The Q1 FY26 performance underscores both resilience and the need to adapt amid global trade disruptions and industry slowdowns.

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