Jaguar Land Rover (JLR) parent Tata Motors has disclosed a significant drop in its quarterly net profit, primarily due to lower demand and the imposition of US trade tariffs.
The automotive company recorded a net profit of Rs40.03bn ($456m) for the first quarter (Q1) of the FY2026 (quarter ended 30 June), which is a 62% decrease from the Rs105.87bn ($1.2bn) reported in the corresponding quarter of the previous year.
The company's consolidated revenue from operations also saw a dip, falling to Rs1.03tn in Q1 FY26, a 2.9% decline from Rs 1.06tn in the same quarter of the previous year.
In response to these challenges, Tata Motors is concentrating on reinforcing the core aspects of its business and lessening the impact of tariffs by capitalising on brand strength and improving margins through targeted measures.
Tata Motors Group chief financial officer PB Balaji said: “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.”
JLR reported a revenue of £6.6bn ($8.84bn) for Q1 FY26, a reduction of 9.2% year-on-year.
The decline was attributed to new US trade tariffs and the planned phase-out of legacy Jaguar ICE models ahead of a relaunch for Jaguar as an all-electric brand in 2026.
JLR's profit before tax plummeted by 49.4% to £351m, adversely affected by the US tariffs and foreign exchange headwinds.
The company is focusing on strengthening business fundamentals to mitigate the impact of tariffs and improve contribution margins.
JLR reported a 10.7% year-on-year decline in wholesale volumes for Q1 of FY26.
The announcement of these financial results comes shortly after JLR's CEO, Adrian Mardell, left the company.
Mardell said: “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.”
The commercial vehicle (CV) segment's revenue decreased by 4.7% to Rs170.09bn, while earnings before interest, taxes, depreciation, and amortisation (EBITDA) margins improved to 12.2%.
In the CVsegment, wholesale volumes decreased by 6%, with domestic volumes down by 9% year-on-year. However, exports saw a significant increase of 68%.
The passenger vehicle (PV) segment experienced an 8.2% revenue drop to Rs108.77bn, with EBITDA falling to 4%.
The PV segment's wholesale volumes fell by 10.1% to approximately 124,800 units, with electric vehicle penetration holding steady at 13%.
