Tata Motors Q1 Profit reduces 63% on JLR tariff hit, estimates miss

In the June quarter, Tata Motors’ unified net profit was submerged at 63% annually because the US Tariffs already work together with the home demand for the wicket.

Net profit for the three -month period has dropped from 10,514 crore a year ago to 93,924 crore. The profits of the year have earned earnings from closed operations like Tata Motors Finance, which looks more intense. The quarterly profit reduction was 30% when considering the only businesses continuing.

The eight brokerage’s Bloomberg voting was estimated at Rs 3,972 crore.

Despite the low money costs and efficiency benefits in the home commercial vehicle (CV) business, the full quarter gave profitability to the planned wind-down profitability of the US tariff effect and legacy Jaguar models.

Revenue from operation has dropped 2.5% to 0 1,04,407 crore a year ago by 0 1,07,102 crore. The EBIT margin contract was 0 37. Base point to 3.3%, while EBITDA .8 35..8% fell ,,,,,,,,, 00 million.

PB Balaji, Group Chief Financial Officer of Tata Motors Group, “Demand is likely to be challenging globally.”

He emphasized that Tata Motors would focus on strengthening the influence of tariffs by strengthening professional fundamentals and benefiting brand strength.

Balaji said India’s business is likely to improve with the beginning of the festival season later this month.

Jaguar Land Rover (JLR) revenue dropped .2.5% to $ 6.6 billion in the quarter, with EBIT margin with a point of 9.9%. The% is done. The tariff imposed by the US on the UK- and EU-made vehicles is priced at 250 million Million. Since July 1, these duties are being done 10% for UK imports and 15% for EU imports.

Balaji, who was appointed as CEO of the new JLR, warned that China’s recent 10% luxury goods tax, now applies to the threshold at a lower price, however, the combination of tariff relief, cost savings and production is expected to improve the last year. This will help the company maintain its 5-7% EBIT margin guidance for FY 26.

Tata Motors’ CV segment revenue fell 7.7% in the last quarter, 17,009 crore, but the margin was 60 bps improved to 12.2%, helping with better realization and cost control.

Small CV volumes have stabilized, and the share of the heavy truck market is ready for recovery, said Balaji. The CV resides on the turnaround to mid-kishore margin track, which is supported by the next projection and focuses on high compensation capital allocation, he noted.

The passenger vehicle (PV) business of Tata Motors (PV) has declined by 8.2%. 10,877 crore. EV penetration was 13%, while CNG accounts for 27% of vehicles sales.

The company expects a new launch, including Harrior.Ie, who got 10,000 bookings on its first day, and refreshed Harrier and Safari Ice Models Dells to withdraw volume during the festive season. In July, Tata Motors sold record 7,000 electric vehicles.

Due to the requirements of seasonal working capital, the automaker ended the quarter with free negative cash flow of ₹ 12,300 crore, with a net automotive debt of Rs 13,500 crore.

Tata Motors confirmed the plan to complete the CV business demerger by October 1 October, as well as completing $ 8.8 billion ($ 4.4 billion) of Italian CV maker Iveco Group’s non-defense operation in the first half of FY 26.

Shares of Tata Motors closed at 2.1% lower at Rs 633.3 on BSE, down 0.95% in the benchmark Sensex.