Tata Motors' car and JLR arm grows at home but is dragged by a weak JLR quarter
Tata Motors Passenger Vehicles posted a 9.3% rise in Q1 revenue to INR 95,800 crore, but profit and margins fell as JLR wholesales dropped 9.2% on supply constraints and the Jaguar wind-down, even as its India business grew 65%.
Tata Motors Passenger Vehicles, the entity housing Tata's cars, EVs and Jaguar Land Rover after last year's demerger, reported consolidated revenue up 9.3% to INR 95,800 crore in the June quarter, but with profit and margins down as a soft JLR performance offset strong growth at home.
JLR, which drives most of the group's revenue, saw wholesales fall 9.2% year on year, hit by temporary supply constraints including a fire at a key component supplier, Middle East disruption, and the planned wind-down of the Jaguar brand ahead of its electric relaunch, while elevated marketing spend squeezed profitability further. The consolidated EBITDA margin fell about 1.3 points to 7.4%, pre-tax profit before exceptionals came in at INR 1,600 crore and net profit at INR 900 crore, with free cash flow deeply negative at minus INR 11,800 crore on seasonal working-capital swings, and net debt at INR 42,200 crore.
The bright spot was India, where the domestic business grew revenue 65%, helped by recovering demand and rising EV penetration, though commodity and currency costs capped margins. The company framed FY27 as a transition year for JLR, which plans four new products including battery-electrics in coming months, while its India arm focuses on launches and cost discipline. CFO Dhiman Gupta called it a resilient quarter carrying domestic momentum while preparing JLR for its electric shift.
