- Tata Motors reported a consolidated net profit surge of 83% to ₹3,924 crore for Q1FY27.
- The company's Q1FY27 revenue increased by 9.3% to ₹95,799 crore, compared to ₹87,677 crore in the year-ago period.
- However, the passenger vehicle segment profit fell by 80.3% to ₹775 crore.
- Jaguar Land Rover (JLR) faced supply constraints but remained profitable.
- Electric vehicle (EV) volumes grew by 112% year-on-year.
- JLR is set to launch four new battery electric vehicles in the coming months.
- Revenue growth was impacted by adverse foreign exchange and commodity costs, while profitability remained under pressure from market conditions.
- Domestic demand remains healthy despite cost pressures, while commodity costs are expected to remain elevated.
Tata Motors reported a remarkable 83% increase in net profit for Q1, reaching ₹3,924 crore, despite a significant 80% decline in its passenger vehicle unit profit, which fell to ₹775 crore. The company's revenue rose by 9.3% to ₹95,799 crore, compared to ₹87,677 crore in the previous year.12
However, the firm's Ebitda (earnings before interest, taxes, depreciation, and amortisation) decreased by 17.2% to ₹6,326 crore, down from ₹7,639 crore in the last fiscal year. The Ebitda margin contracted by 6.6% to 8.1% year-on-year, while the Ebit margin fell to 2.8% from 4%.
The decline in passenger vehicle profits was attributed to supply constraints affecting the Jaguar Land Rover (JLR) division, which also faced a 9.6% downturn in revenue to 6 billion pounds in the year-ago period. Despite these challenges, JLR remained profitable, with plans to launch four new battery electric vehicles soon. The company noted that revenue growth was hindered by adverse foreign exchange and commodity costs, while profitability faced pressure from market conditions.467
“The surge was driven by strong performance at Jaguar Land Rover, which remained profitable despite supply disruptions, while EV volumes grew 112% year-on-year. JLR plans to launch four new battery electric vehicles in the coming months, with commodity costs expected to stay elevated.”
