Tata Motors Passenger Vehicles (TMPV) announced its June-quarter performance (Q1 FY27) today, post market hours, reporting a weak set of numbers as continued weakness in JLR performance, coupled with rising raw material costs, weighed on profitability, offsetting strong domestic sales.
The company reported a consolidated net profit of ₹775 crore, an 80% decline from ₹3,924 crore reported in the same period last year. Sequentially, net profit also remained lower, declining from ₹5,783 crore in the March quarter.
The tensions in the Middle East have kept commodity prices higher, adding to cost pressures as total expenses rose faster than revenue, weighing on margins.
Total expenses rose 12% year-on-year to ₹95,338 crore, driven by higher raw material costs. Meanwhile, revenue from operations during the reporting quarter stood at ₹94,827 crore, up 9% from ₹87,141 crore in the same period last year.
However, revenue declined 10% sequentially from ₹1,04,923 crore reported in the final quarter of the previous financial year.
On the operating front, the company posted a 20% YoY jump in EBITDA to ₹6,176 crore, with the EBITDA narrowing to 6.5% from 8.8% in the corresponding period of last quarter.
JLR volumes down 9%
Jaguar Land Rover’s (JLR) reported a 9.2% drop in wholesale sales in the first quarter, impacted by temporary supply constraints, including a fire at a major component supplier at the beginning of the quarter.
The business, which accounts about two-thirds of Tata Motors overall revenue, also faced market disruption linked to the conflict in the Middle East, along with the planned wind-down of outgoing Jaguar models ahead of the launch of the Jaguar Type 01.
In addition to lower volumes, JLR’s profitability was impacted by market conditions, which pushed retail VME (variable marketing expenditure) up to 7.1% from 4.1% in the year-ago period. Despite these headwinds, the company remained profitable during the quarter. PAT stood at £66 million, down sharply from £248 million in Q1 FY26.
Meanwhile, the company further said its product mix improved, with Range Rover, Range Rover Sport, and Defender accounting for 80.8% of the model mix, compared with 77.2% in the same quarter last year.
Looking ahead, the company said global geopolitical developments and trends in the luxury segment remain key monitorables. JLR expects an important year ahead as it expands its battery electric vehicle (BEV) portfolio, with four new products expected to be launched in the coming months.
Domestic PV volumes surge 46%; EV sales more than double
Tata Motors’ passenger vehicle business delivered a strong performance in the domestic market during Q1 FY27, with volumes rising 46% year-on-year, significantly outperforming the industry.
EV volumes surged 112% YoY, supported by the company’s comprehensive electric vehicle portfolio, new launches, and improving demand following the easing of disruptions related to the West Asia conflict.
Revenue for the quarter stood at ₹17,900 crore, registering a robust 64.8% YoY growth. However, the benefit of strong revenue growth was partially offset by the adverse impact of foreign exchange movements and higher commodity costs.
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