Tata Motors beats Street estimates with Rs 3,924 crore Q1 profit

Tata Motors Q1 FY26 Earnings: Tata group auto giant Tata Motors on Friday registered a consolidated net profit of Rs 3,924 crore for the quarter ended June 30, beating analysts’ expectations by a wide margin.

Its revenue contracted 2.5 per cent to Rs 1,04,407 crore for the fiscal first quarter, according to a regulatory filing. 

The top line was also better than estimates. 

According to Zee Business research, Tata Motors was estimated to report a net profit of Rs 3,121 crore for the June quarter. 

Tata Motors Q1 FY26 Results: Operational performance

The company registered June-quarter earnings before interest, taxes, depreciation and amortisation (EBITDA) at Rs 9,700 crore, a fall of 35.8 per cent on a year-on-year basis. 

Its EBITDA margin — a key measure of profitability — declined by 480 basis points to 9.2 per cent. 

Management commentary 

Tata Motors said that with the demand situation likely to remain challenging, it will continue to focus on strengthening the business fundamentals and mitigate the impact of tariffs by leveraging the brand strength to drive a better mix, and targeted actions to improve contribution margins. 

“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,” said PB Balaji, Group Chief Financial Officer, Tata Motors.

Segment-wise performance 

Jaguar Land Rover revenue fell 9.2 per cent to 6.6 billion pounds, with a 650-basis-point decline in margin to 9.3 per cent. UK-based JLR is part of Tata Motors.  

Tata Motors’ commercial vehicle revenue fell 4.7 per cent to Rs 17,000 crore. Revenue from the passenger vehicle unit decreased 8.2 per cent to  Rs 10,900 crore. 

Tata Motors reported CV and PV margins 12.2 per cent and 4.0 per cent, up 60 basis points and down 310 basis points, respectively.

Tata Motors shares vs Nifty 50 vs Nifty Auto

Earlier on Friday, the Tata Motors stock ended 2.2 per cent lower at Rs 633.3 apiece on BSE amid a broad-based sell-off on Dalal Street. 

At this level, the Tata Motors stock has fallen 15.8 per cent in 2025 so far, underperforming gains of 2.6 per cent and 1.5 per cent in the Nifty 50 and Nifty Auto gauges, respectively.