Tata Motors Limited has announced its financial results for the first quarter, ending June 30. The company reported consolidated revenue of ₹104,407.00 crores, down 2.5% year-over-year, reflecting volume declines across all business segments and profitability challenges, particularly at Jaguar Land Rover (JLR).

Key Financial Highlights

Segment Performance

Jaguar Land Rover (JLR)

JLR's performance was significantly impacted by new US trade tariffs and the planned wind-down of legacy Jaguar vehicles. However, the company welcomed the signing of a UK-US trade deal that will reduce tariffs on UK-produced vehicles exported to the US from 27.5% to 10%, effective June 30.

Tata Commercial Vehicles (Tata CV)

Despite lower volumes, Tata CV maintained double-digit EBITDA margins, benefiting from better realizations and material cost savings.

Tata Passenger Vehicles (Tata PV)

Tata PV experienced volume pressures due to softness in industry demand and transitions to new models.

Corporate Actions

1. The final hearing for the scheme of demerger was concluded by the National Company Law Tribunal (NCLT) on August 8, with the order reserved. The company aims to complete the demerger this quarter, with October 1 as the effective date.

2. On July 30, Tata Motors announced a 100% acquisition of Iveco Group N.V. (excluding Defence) shares via a Voluntary Tender Offer. The offer, valued at €3.80 billion, is subject to required clearances and is expected to complete in the first half of 2026.

Outlook

With challenging demand conditions expected to persist, Tata Motors will focus on strengthening business fundamentals and mitigating the impact of tariffs. The company aims to leverage brand strength to drive a better mix and implement targeted actions to improve contribution margins.

PB Balaji, Group Chief Financial Officer of Tata Motors, 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."

The company remains focused on delivering a strong second-half performance, particularly in light of the upcoming demerger in October.

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.