Mumbai, Aug 9 (UNI) Tata Motors has officially announced that it has posted a 30 per cent decline in its Q1 FY26 net profit of Rs 3,924 crore from the Rs 5,643 crore net profit reported in the same period last year.
Tata Motors stated that its performance was impacted by decline in profitability primarily from its Jaguar Land Rover business, besides volume decline in all businesses.
The company stated that US President Donald Trump’s tariff impacted revenues from Jaguar Land Rover which declined by more than 9 per cent to £6.6 billion (UK pound sterling).
Significantly, the United States is Jaguar Land Rover’s most important export market, accounting for nearly a quarter of its sales.
Operating profit from Jaguar Land Rover slipped by 49 per cent to 351 million pounds or Rs 4,130 crore in Q1FY26.
Revenue at Jaguar Land Rover, which was acquired by Tata Motors in June 2008, also decreased by 10 per cent to 6.6 billion pounds or Rs 77,662 crore after it had to stop exports to the United States for nearly a month in April in response to tariffs imposed by US President Trump and phased out older Jaguar models primarily made in the United Kingdom (UK).
However, despite the fall in revenue, Jaguar Land Rover has kept its guidance range for FY26 unchanged at 5 to 7 per cent.
“Welcomed signing of UK-US trade deal to reduce tariffs on UK-produced vehicles exported to the US from 27.5 per cent to 10 per cent, effective from June 30, 2025.
EU-US trade deal announced on July 27, 2025 will, in due course, reduce tariffs on Jaguar Land Rover’s European Union-made vehicles exported to the US from 27.5 per cent to 15 per cent,” the company stated.
The revenue of Tata Motors from operations dropped by 2.5 per cent year-on-year to Rs 1.04 lakh crore in Q1 FY26, from Rs 1.07 lakh crore in Q1 FY25, while EBITDA declined 36 per cent year-on-year to Rs 9,700 crore.
The company’s commercial vehicle revenues declined by 4.7 per cent to Rs 17,000 crore, while EBITDA margins improved to 12.2 per cent, due to better realisations and cost savings despite lower volumes.
Revenues from passenger vehicles declined by 8.2 per cent, reflecting decreased demand and transition to newer models.
