Tata Motors Limited (TML) has announced its consolidated financial results for the first quarter of fiscal year 2025–26 (Q1 FY26), ending June 30, 2025. The company reported consolidated revenue of ₹104,407 crore, a 2.5% decline compared to the same period last year. Earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at ₹9,200 crore, representing a margin of 8.8%, down 480 basis points year-on-year. Profit before tax (PBT) on a continuing operations basis (bei) was ₹5,617 crore, supported by a sharp reduction in finance costs despite lower operating profits.
The performance across business segments was mixed, with challenges in volume and profitability, particularly at Jaguar Land Rover (JLR), while Tata Commercial Vehicles maintained strong margins and Tata Passenger Vehicles faced pressure during a model transition phase.
JLR reported quarterly revenue of £6.6 billion, down 9.2% year-on-year, primarily due to the imposition of a 27.5% U.S. trade tariff on vehicles manufactured in the UK and EU and exported to the United States, as well as the planned wind-down of legacy Jaguar models ahead of new product launches. EBITDA margin declined to 9.3%, down 650 basis points, while EBIT margin fell to 4.0%, a decrease of 490 basis points. Profit before tax was £351 million, down 49.4% compared to £693 million in Q1 FY25, reflecting the impact of tariffs and foreign exchange headwinds.
Despite these challenges, JLR delivered its 11th consecutive profitable quarter. Free cash flow for the period was negative £758 million, with a cash balance of £3.3 billion and total liquidity of £5.0 billion, including an undrawn £1.7 billion revolving credit facility.
A significant development came with the signing of a UK-US trade agreement effective June 30, 2025, which reduced tariffs on UK-made vehicles exported to the US from 27.5% to 10%. Additionally, an EU-US trade deal announced on July 27, 2025, is expected to reduce tariffs on EU-produced JLR vehicles to 15% in the coming months, offering relief in future quarters.
JLR maintained its full-year guidance for FY26, targeting an EBIT margin of 5% to 7% and expecting free cash flow to be close to zero. The company continues to invest in its “Reimagine” transformation strategy, with planned spending of £18 billion over five years, including £3.8 billion in FY26, focused on next-generation electric vehicles.
Product highlights included the first media drives of the electric Range Rover prototypes, which received critical acclaim and have already attracted a waiting list of over 65,000. The Range Rover SV Masāra and SV Saturio were launched in India and Mexico, respectively, while global launches included the Range Rover and Range Rover Sport SV Black models. The Defender OCTA Black Edition was introduced, and the Defender was named the official global automotive partner of Oasis Live ’25. Discovery models saw new Tempest and Gemini editions, along with Landmark and Metropolitan editions for the Discovery Sport.
The Jaguar Type 00 concept, unveiled in Paris and Miami, made appearances at major international events including Goodwood, Tokyo, and Monaco. JLR also reaffirmed its longstanding association with the British Royal Family after being granted the Queen’s Royal Warrant.
In sustainability, JLR generated over £100 million in value from reuse and refurbishment initiatives as it transitions its industrial operations for electrification. Electric drive unit (EDU) and battery production lines at the Electric Propulsion Manufacturing Centre in Wolverhampton, UK, are nearing completion and will support next-generation electric vehicle production.
Adrian Mardell, Chief Executive Officer of JLR, said: “Thanks to our talented people and the robust foundations we have built at JLR, we delivered an 11th successive profitable quarter amid challenging global economic conditions. We are grateful to the UK and US Governments for delivering at speed the new UK-US trade deal, which will lessen the significant US tariff impact in subsequent quarters, as will, in due course, the EU-US trade deal announced on 27 July 2025. Looking ahead, we remain focused on delivering our transformational Reimagine Strategy, including investing £3.8 billion this financial year to support the development of our next-generation vehicles, including our stunning new electric Range Rover and Jaguar models.”
Tata Commercial Vehicles (CV) reported revenue of ₹17,009 crore, a 4.7% decrease from the previous year. Wholesale volumes totaled 88,000 units, down 6% year-on-year, with domestic sales declining 9% due to subdued industry demand, while exports grew 68%.
Despite lower volumes, the segment improved profitability, with EBITDA margin rising 60 basis points to 12.2% and EBIT margin up 80 basis points to 9.7%. Profit before tax (bei) was ₹1,657 crore. The improvement was driven by better realizations and cost-saving initiatives.
The business maintained a strong market position, with a 36.1% share in the domestic CV market based on Vahan data, including 47.7% in HGV+HMV, 35.9% in MGV, 28.9% in LGV, and 36.9% in the passenger segment. Return on capital employed (ROCE) improved to 39.6%, up from 37.7% in FY25.
New product launches included the Ace Pro, positioned as India’s most affordable four-wheel mini-truck, available in multiple powertrain options. The company also introduced air-conditioned cabins and cowls across its truck range to enhance driver comfort and real-world performance. Internationally, Tata CV strengthened its presence in Qatar with the launch of the all-new LPO 1622 bus.
Girish Wagh, Executive Director of Tata Motors, said: “Q1 FY26 was a challenging quarter for the commercial vehicle industry, with subdued demand across key segments impacting overall performance. We also witnessed a decline in domestic sales volumes, reflecting broader market softness and delayed fleet replacement cycles, while segments like Buses and Vans showed resilience and our International Business delivered growth. Our commitment to product innovation and customer-centricity remained strong. The launch of the Ace Pro mini-truck in multiple powertrain options received encouraging initial market response, reaffirming our focus on delivering relevant and affordable mobility solutions. Despite adverse volumes, the business delivered 12.2% EBITDA and healthy ROCE of ~40%. The acquisition of Iveco Group is a strategic leap forward in our ambition to build a future-ready commercial vehicle ecosystem. By integrating the strengths of both organizations, we will be unlocking new avenues for operational excellence, product innovation, and customer-centric solutions.”
Tata Passenger Vehicles (PV) reported revenue of ₹10,877 crore, down 8.2% year-on-year. Wholesale volumes totaled 124,800 units, a 10.1% decline, driven by industry-wide demand softness and ongoing model transitions for the Altroz, Harrier, and Safari.
EBITDA margin declined 180 basis points to 4.0%, while EBIT margin turned negative at -2.8%, a drop of 310 basis points. Profit before tax (bei) was -₹129 crore. The decline in profitability was attributed to lower volumes, adverse realizations, and reduced operating leverage, partially offset by savings in variable costs.
The electric vehicle (EV) segment remained a bright spot, with 16,200 units sold, a 2.1% decline, and EV penetration holding steady at 13%. Tata’s EV market share stood at 36.7%. The launch of the Harrier.ev generated over 10,000 bookings on the first day, signaling strong customer interest. The all-new Altroz was launched with the tagline “Premium by Legacy, Modern by Design,” and the Tata Punch became India’s fastest SUV to cross the 6 lakh unit milestone in under four years.
The company introduced a lifetime warranty on high-voltage batteries for the Curvv.ev and Nexon.ev 45 kWh models. July 2025 recorded the highest-ever monthly EV sales for the company, marking a significant milestone in its zero-emission journey.
Shailesh Chandra, Managing Director of Tata Passenger Vehicles and Tata Passenger Electric Mobility, said: “Q1 FY26 was a subdued quarter for the passenger vehicle industry, with volume pressures persisting across most segments. Demand softness weighed on overall performance, although the Electric Vehicle category remained a bright spot, supported by new launches and growing customer interest. Our continued focus on customer engagement and portfolio renewal remained strong during the quarter. New launches—Altroz and Harrier.ev—received encouraging initial market response, with their full impact expected to unfold in the coming months. Looking ahead, while the overall industry growth is expected to remain muted, we are confident that our recent and forthcoming series of launches—across ICE and EVs—will enable us to outperform the market and strengthen our position across key segments.”
Tata Motors announced progress on two major corporate initiatives. The final hearing before the National Company Law Tribunal (NCLT) regarding the proposed demerger of its commercial and passenger vehicle businesses has concluded, with the order reserved. The company aims to complete the demerger by October 1, 2025, as the proposed effective date.
On July 30, 2025, Tata Motors launched a voluntary tender offer to acquire 100% of Iveco Group N.V. (excluding its defense business) in a transaction valued at €3.8 billion. The deal, subject to regulatory approvals, is expected to close in the first half of 2026. The acquisition is intended to combine complementary capabilities in the global commercial vehicle sector and create a more integrated, future-ready ecosystem.
Finance costs decreased by ₹533 crore to ₹938 crore, driven by a reduction in gross debt. Net profit from joint ventures and associates was ₹132 crore, slightly higher than ₹129 crore in Q1 FY25. Other income (excluding grants) was ₹729 crore, down from ₹768 crore in the previous year.
Automotive free cash flow for the quarter was negative ₹12,300 crore, primarily due to adverse working capital movements influenced by seasonality and tariff-related impacts. Net automotive debt stood at ₹13,500 crore, including lease liabilities of ₹9,500 crore.
Company leadership emphasized ongoing efforts to strengthen business fundamentals, improve contribution margins, and manage external challenges such as tariffs and demand fluctuations.
PB Balaji, Group Chief Financial Officer, Tata Motors, said: “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.”