The net profit for the three -month period fell to £ 3,924 crore of £ 10,514 crore a year earlier. The year ago profit included income from terminated activities such as TATA Motors Finance, making the fall seem sharper. The decrease in the quarterly profit was 30% in considering only the companies that continue with activities.
The win was marginal the estimate of RS3.972 in a Bloomberg survey by eight real estate agents.
A full-quarter American tariff impact and the planned wind down from Legacy Jaguar models dented profitability despite lower financing costs and efficiency gains in the domestic company vehicles (CV).
The turnover from the activities fell by 2.5% to £ 1.04.407 crore of £ 1.07.102 Crore a year earlier. EBIT -Marge locked 370 basic points to 4.3%, while EBITDA fell by 35.8% to £ 9,700 crore.
“The demand situation will probably remain challenging worldwide,” said PB Balaji, Chief Financial Officer of the group, Tata Motors Group, in a media call after work.
Sales at Jaguar Land Rover (JLR) fell by 9.2% to £ 6.6 billion during the quarter, with an EBIT margin by 4.9 percentage points to 4.0%. Rates imposed by the US at 27.5% on VK and EU-made vehicles for most of the quarterly £ 250 million costs. From 1 July, these tasks will be reduced to 10% for the UK input and 15% for EU imports.
Balaji, who has been appointed as the new JLR CEO, warned that the recent 10% luxury luxury luxury tax from China, now applies to a lower price threshold, will weigh on request, although the successive margin improvement is expected throughout the year on the back of tariff lighting, cost savings and product mix optimization. This will help the company maintain its 5-7% EBIT -Marge guidelines for FY26.
The turnover of CV segment from TATA Motors fell by 4.7% to £ 17.009 Crore last quarter, but the margins improved 60 BPS to 12.2%, helped by better realizations and cost control.
Small CV volumes are stabilized and the market share of heavy trucks is ready for recovery, Balaji said. The central heating to the center of the teenage margins remains on the right track, supported by upcoming launches and a focus on high-efficiency capitulation assignment, he noticed.
Tata Motors’ namesake Passenger Vehicle (PV) recorded a turnover decrease of 8.2% at £ 10,877 crore. EV penetration remained at 13%, while CNG vehicles were good for 27% of sales.
The company expects new launches, including Harrier.ev, who received 10,000 bookings on the first day, and renewed Harrier and Safari Ice models, to lift the volumes during the festive season. In July, Tata Motors sold a record 7,000 electric vehicles.
The automaker ended the quarter with a free negative cash flow of £ 12,300 crore due to seasonal working capital needs, with a net automotive debt of £ 13,500 crore.
TATA Motors confirmed plans to complete the CV Business Demerger before 1 October, in addition to completing the acquisition of € 3.8 billion ($ 4.4 billion) of the Italian central heating maker Iveco Group’s non-defense activities in the first half of FY26.
Shares of TATA Motors closed 2.1% lower on RS633.3 each on the BSE, which chases a decrease of 0.95% in the Benchmark Sensex.
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