Jaguar Land Rover (JLR) parent company Tata Motors has recently announced a significant decrease in its quarterly net profit, mainly due to lower demand and the impact of US trade tariffs. In the first quarter (Q1) of FY2026, Tata Motors recorded a net profit of Rs40.03bn ($456m), marking a 62% decline from the previous year’s Rs105.87bn ($1.2bn).
Additionally, the company’s consolidated revenue from operations also saw a dip, falling to Rs1.03tn in Q1 FY26, a 2.9% decrease from Rs1.06tn in the same quarter of the previous year. In response to these challenges, Tata Motors is focusing on strengthening the core aspects of its business and mitigating the impact of tariffs by leveraging brand strength and implementing measures to improve margins.
Tata Motors Group CFO PB Balaji stated, “As tariff clarity emerges and festive demand picks up, we are aiming to accelerate performance and rebuild momentum across the portfolio. Our focus remains on delivering a strong second-half performance, especially with the upcoming demerger in October 2025.”
JLR reported a revenue of £6.6bn ($8.84bn) for Q1 FY26, reflecting a 9.2% year-on-year decrease. This decline was attributed to new US trade tariffs and the planned phase-out of legacy Jaguar ICE models ahead of the relaunch of Jaguar as an all-electric brand in 2026. JLR’s profit before tax also plummeted by 49.4% to £351m, primarily impacted by the US tariffs and foreign exchange headwinds.
To counteract these challenges, JLR is focusing on strengthening its business fundamentals to mitigate the impact of tariffs and improve contribution margins. The company 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 emphasized the company’s commitment to delivering its transformational Reimagine Strategy, including investing £3.8 billion this financial year to support the development of next-generation vehicles.
In the commercial vehicle (CV) segment, revenue decreased by 4.7% to Rs170.09bn, while earnings before interest, taxes, depreciation, and amortization (EBITDA) margins improved to 12.2%. The CV segment witnessed a 6% decrease in wholesale volumes, with domestic volumes down by 9% year-on-year, but exports saw a significant increase of 68%.
In the passenger vehicle (PV) segment, revenue dropped by 8.2% to Rs108.77bn, with EBITDA falling to 4%. Wholesale volumes in the PV segment fell by 10.1% to approximately 124,800 units, while electric vehicle penetration remained steady at 13%.
Overall, Tata Motors and JLR are facing challenges in the automotive industry, but they are actively implementing strategies to navigate these hurdles and position themselves for success in the future.
