Tata Motors Limited announced its financial results for the first quarter, reporting a mixed performance across its business segments.

Key Highlights

• Consolidated revenue declined 2.5% year-over-year to ₹104,407.00 crore
• EBITDA margin contracted to 9.2% from 14.0% in the same quarter last year
• Profit before tax (before exceptional items) decreased to ₹5,617.00 crore from ₹8,851.00 crore last year
• Free cash flow (automotive) was negative ₹12,300.00 crore

Segment Performance

Jaguar Land Rover (JLR)

• Revenue down 9.2% to £6.60 billion
• EBIT margin declined to 4.0% from 8.9% in the same period last year
• Performance impacted by US trade tariffs and planned legacy Jaguar wind down

Tata Commercial Vehicles

• Revenue decreased 4.7% to ₹17,009.00 crore
• EBITDA margin improved to 12.2% from 11.6% last year
• Domestic volumes down 9%, exports up 68%

Tata Passenger Vehicles

• Revenue fell 8.2% to ₹10,877.00 crore
• EBITDA margin contracted to 4.0% from 5.8% in the same quarter last year
• Wholesale volumes declined 10.1% year-over-year

Management Commentary

PB Balaji, Group Chief Financial Officer, stated: "Despite stiff macro headwinds, the business delivered a profitable quarter, supported by strong fundamentals. As tariff clarity emerges and festive demand picks up, we are aiming to accelerate performance and rebuild momentum across the portfolio."

Outlook

The company expects volumes to improve progressively in the coming quarters, driven by a healthy monsoon forecast, reduction in repo rate, and renewed focus on infrastructure development. Tata Motors remains focused on strengthening business fundamentals and mitigating the impact of tariffs by leveraging brand strength to drive a better mix and targeted actions to improve contribution margins.

Corporate Actions

1. The final hearing for the scheme of demerger has been concluded by NCLT, with the order reserved. The company aims to complete it this quarter with October 1 being the Effective Date.

2. Tata Motors announced the 100% acquisition of Iveco Group N.V. (excluding Defence) shares via Voluntary Tender Offer, valued at €3.80 billion. The offer is subject to required clearances and is expected to complete in the first half of 2026.

Despite the challenging quarter, Tata Motors remains focused on delivering a strong second-half performance and executing its long-term strategies.

Tata Motors , one of India's leading automotive manufacturers, is set to release its financial results for the first quarter of fiscal year 2026 on August 8, 2025. The announcement will cover the quarter ended June 30, 2025, and includes both audited standalone and unaudited consolidated results.

Financial Results Announcement

The company has scheduled a board meeting to consider and approve the financial results, which will be followed by an analyst and investor call. This event is crucial for stakeholders as it will provide insights into Tata Motors' performance in the early part of the fiscal year.

Expected Quarterly Earnings

Analysts are forecasting a challenging performance for Tata Motors in the upcoming quarterly results:

• Consolidated profit after tax is expected to decline by 36% year-on-year
• Revenue is projected to drop by 6%
• The performance is attributed to sluggish volumes in both domestic operations and Jaguar Land Rover (JLR) business

Jaguar Land Rover (JLR) Performance

• JLR revenues are projected to decline 16% year-on-year due to a 12% fall in volumes
• Higher average selling prices from a richer model mix are expected
• JLR's EBITDA margin is estimated to fall 680 basis points to 9.00%
• EBIT margin is expected to drop to 3.20% due to negative operating leverage, US tariffs, and adverse forex movements

Domestic Business Performance

• Standalone revenue is projected to drop 6% year-on-year
• EBITDA margins are expected to contract due to commodity headwinds and increased marketing expenses
• Passenger vehicle EBITDA margin is estimated to decline 100 basis points to 6.80%
• Commercial vehicle segment also faces margin pressure
• Analysts forecast a 10% decline in India passenger vehicle volumes and 6% drop in commercial vehicle volumes
• Margins in both segments are expected to contract due to higher input costs and discounts

Trading Window Closure

In line with regulatory requirements, Tata Motors has implemented a trading window closure for designated persons. The window has been closed since June 24 and will remain shut until 48 hours after the results announcement. This measure is designed to prevent insider trading and ensure fair market practices.

Previous Quarter Performance

To provide context, it's worth noting Tata Motors' performance in the previous quarter:

The company experienced marginal revenue growth of 0.40%, reaching 1.20 lakh crore. However, net profit saw a significant decline of 51.70%, falling to 8,470.00 crore. Additionally, the Ebitda margin contracted to 14.00%.

Stock Performance

Tata Motors' stock has faced considerable challenges in recent times:

• Past Year: Declined 37.15%
• Year-to-Date: Down 14.00%
• Current Trading Price: 644.35
• 52-Week High: 1,142.00

The stock's performance indicates a significant underperformance, trading well below its 52-week high. This decline reflects the challenges faced by the company and the automotive sector as a whole.

As investors and analysts await the upcoming Q1 FY26 results, all eyes will be on Tata Motors to see how the company has navigated the challenges of the past quarter and its strategies for the future.