MUMBAI: Tata Motors on Friday reported a 62.2 per cent drop in consolidated net profit to Rs 4,003 crore for the June quarter, hit by volume declines across segments, lower Jaguar Land Rover (JLR) earnings due to US tariffs, and a high base effect from gains on the sale of discontinued operations last year.
The auto major had posted a consolidated net profit of Rs10,587 crore in the April-June quarter of the previous fiscal, Tata Motors Ltd (TML) said in a regulatory filing. Total revenue from operations fell to Rs1,04,407 crore from Rs1,07,102 crore a year earlier.
Tata Motors said performance was impacted by lower volumes in all businesses and weaker profitability at JLR. Following the amalgamation of Tata Motors Finance Ltd into Tata Capital Ltd, the company booked a gain of Rs 4,975 crore on the sale of discontinued operations, after receiving equity shares of Tata Capital worth Rs8,016 crore over the book value of net assets transferred as of April 1, 2024.
“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.
Against the backdrop of the upcoming demerger in October 2025, our focus remains firmly on delivering a strong second-half performance,” Tata Motors Group CFO PB Balaji said.
JLR revenue
JLR revenues fell 9.2 per cent to 6.6 billion pounds, hurt by new US trade tariffs on UK and EU-made cars shipped to the US, and the planned wind-down of legacy Jaguar models. Outgoing JLR CEO Adrian Mardell said the recently announced UK-US and EU-US trade deals will help reduce tariff impacts in subsequent quarters.
He added that JLR remains focused on its “Reimagine” strategy, with 3.8 billion pounds earmarked for investments this year, including next-generation electric Range Rover and Jaguar models.
In passenger vehicles, Q1 FY26 wholesale volumes were 1,24,800 units, down 10.1 per cent due to industry decline and transitions for new Altroz, Harrier and Safari models. Managing Director Shailesh Chandra said the quarter was subdued for the PV industry, with demand softness across most segments, though EV sales remained strong.
Commercial vehicle wholesales stood at 88,000 units, down 6 per cent. Executive Director Girish Wagh said the CV industry faced weak demand in key segments, slower fleet replacement, and domestic sales declines, though buses, vans, and international business showed resilience.
The company expects gradual improvement in CV volumes aided by a healthy monsoon forecast, lower interest rates, and renewed infrastructure push.
