The company’s total expenses rose faster than revenue, increasing 12.1 per cent to ₹95,338 crore
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Tata Motors Passenger Vehicles Ltd reported an 80.3 per cent year-on-year fall in its consolidated net profit in the June quarter to ₹775 crore. The company had reported a bottom line of nearly ₹4,000 crore in the same period a year agoThe fall comes even as the automaker’s consolidated revenue from operations rose 9.3 per cent to ₹95,799 crore. A weaker profitability for Jaguar Land Rover and rising commodity costs hurt the company’s earnings.Consolidated EBITDA fell 6.4 per cent to ₹7,128 crore, pulling the EBITDA margin down to 7.4 per cent from 8.7 per cent a year ago. Profit before tax and exceptional items, too, dropped 59.3 per cent to ₹1,606 crore from ₹3,950 crore.The company’s total expenses rose faster than revenue, increasing 12.1 per cent to ₹95,338 crore, while cost of materials consumed climbed 12.7 per cent to ₹60,835 crore.Growth outlookThe passenger-vehicle industry is expected to grow at 15-20 per cent in Q2, said Shailesh Chandra, MD and CEO of the company, helped by a favourable base. But as comparisons turn tougher following last year’s GST-led demand acceleration, growth is expected to moderate in the second half.Lower inventory levels should provide some support, with Chandra expecting the full-year industry growth to “safely” cross 10 per cent. Tata will seek to continue growing faster than the broader market.Despite a near-term margin pressure, the automaker will not trim investments. Chandra reiterated that Tata typically spends 6-8 per cent of revenue on new products, technologies, and capacity expansion. “We are very optimistic about the future growth of the company and therefore, the last thing we would do is compromise on any investment for the future.”Q2 cost pressureCommodity pressures, however, are set to intensify.Chandra said commodity inflation had hit the domestic PV business by about 4.5 per cent of revenue in Q1 and warned of further increases in the September quarter. “The second quarter is going to be a tough one from the input cost perspective,” he said in a post-results conference call on Thursday. “H1 is going to be significantly bad as far as commodity prices are concerned.”Tata plans accelerated cost reductions and gradual price increases to counter the pressure. “Even if you have to go for price increases, this will be more gradual, more calibrated,” Chandra added.JLR weighsJLR’s revenue fell 9.6 per cent to £5.97 billion, while adjusted EBIT margin declined to 2.8 per cent from 4 per cent. Profit before tax and exceptional items plunged 68.9 per cent to £109 million from £351 million.Supply constraints and market conditions, including higher retail incentives, had affected JLR, said CFO Dhiman Gupta.India PV grows 65%The domestic business provided the counterweight, with revenue surging 64.8 per cent to ₹17,930 crore from ₹10,877 crore as volumes increased 46 per cent. EBITDA margin improved to 4.3 per cent from 4 per cent, while EBIT margin improved to negative 0.5 per cent from negative 2.8 per cent.Tata PV’s Vahan market share rose more than 200 basis points to 14.3 per cent, retaining the No. 2 position. EV volumes more than doubled to over 34,000 units.“Q1 FY27 marked a strong start to the year for Tata Motors PV, with an industry-beating 46% y-o-y volume growth, driven by robust customer demand and the success of our recent launches,” said Chandra.Published on August 13, 2026
