Tata Motors April-June Net Profit Drops 30.5%; JLR Margins Hit By US Tariffs

Tata Motors Ltd. on Friday reported a 30.5% on-year decline in consolidated net profit from continuing operations to ₹39.24 billion for April–June, as weak demand weighed on volumes across segments and steep US tariffs dented profitability at Jaguar Land Rover.

Revenue dipped 2.5% on year to a little over ₹1.00 trillion. Consolidated EBITDA dropped 35.8% on year to ₹97.00 billion, with the margin falling 480 basis points to 9.2%. EBIT margin slipped 370 basis points to 4.3%.

Segment Highlights:

JLR revenue:
Fell 9.2% on year to £6.60 billion
EBIT margin declined 490 basis points to 4%
₹29 billion in additional costs were incurred due to 27.5% US tariffs

Commercial vehicles revenue:
Down 4.7% on year at ₹170.10 billion
EBITDA margin improved 60 basis points to 12.2%

Passenger vehicles revenue:
Fell 8.2% on year to ₹108.77 billion
EBITDA margin fell 180 basis points to 4%
Wholesale volumes dropped over 10% on year to 124,800 units

One-off Gain from Tata Capital Deal:
Tata Motors booked a ₹30.40 billion gain on the sale of discontinued operations following the NCLT-approved amalgamation of Tata Motors Finance Ltd. into Tata Capital Ltd.

Demerger and Acquisition Plans:
The company expects to complete the demerger of its commercial and passenger vehicle businesses by Oct. 1, with the tribunal reserving its order. Tata Motors has also announced a €3.8 billion voluntary offer to acquire Italy’s Iveco Group N.V., excluding its defence business, and aims to close the deal in the first half of 2026.

Outlook:
Tata Motors said the demand environment remains challenging and it will focus on improving product mix, leveraging brand strength, and driving margin improvements through targeted cost actions.