Tata Motors Passenger Vehicles (TMPVL) reported a sharp drop in quarterly profitability in Q4 FY26, as profit before tax and exceptional items fell by 29.72% or Rs30.31bn ($315.8m) year-on-year (YoY) to Rs71.67bn.
The decline was mainly driven by “several headwinds at JLR, including cyber incident, tariffs, China luxury tax, [variable marketing expense] VME pressures and adverse commodities”.
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Despite the profit pressure, consolidated revenue increased 7.2% YoY to Rs1.05tn in the quarter, supported by normalised production at JLR and higher passenger vehicle volumes in India.
For FY26, consolidated revenue declined 8.3% YoY to Rs3.35tn, while profit before tax and exceptional items dropped by Rs261.31bn to Rs25.19bn.
After accounting for exceptional items of Rs41bn, TMPVL reported a loss before tax from continuing operations of Rs16bn.
JLR posted revenue of £6.87bn ($9.17bn) in Q4 FY26, down 11.1% from a year earlier.
Profit before tax and exceptional items at the British luxury vehicle unit fell by £417m to £458m.
For the full year, JLR revenue declined 20.9% YoY to £22.91bn, while profit before tax and exceptional items dropped by £2.47bn to £14m.
JLR said its volumes and profitability were affected by the planned phase-out of outgoing Jaguar models ahead of the launch of a new Jaguar range, competitive pressure in China, additional US tariffs and higher variable marketing expenditure.
In contrast, Tata Motors’ domestic passenger vehicle operations recorded stronger growth during the quarter.
Revenue from the Indian passenger vehicle business increased 49.4% YoY to Rs187.42bn, while profit before tax and exceptional items rose to Rs11.02bn from Rs3.92bn a year earlier.
Volumes climbed 37% to 201,800 units.
For FY26, revenue from the Indian passenger vehicle and electric vehicle operations rose 20.7% YoY to Rs584.65bn.
Profit before tax and exceptional items increased to Rs14.37bn from Rs10.83bn in the previous year.
The Indian business generated free cash flow of Rs17bn during Q4 FY26 and ended the year with net cash of Rs67bn.
During the year, Tata.ev crossed cumulative sales of 250,000 electric vehicles.
The company also announced its return to the South African market.
TMPVL managing director & CEO Shailesh Chandra said: “FY26 has been a landmark year for the company, marked by multiple defining milestones. We achieved our highest ever annual sales of over 640,000 units, delivering industry beating growth of 15% YoY and emerging as the #2 ranked player in H2 FY26.”
TMPVL said geopolitical and regulatory developments continued to pose risks to supply chains and commodity costs, although demand in India for SUVs, CNG vehicles and electric vehicles remained healthy.
