Tata Motors Passenger Vehicles (TMPV) reported an 80% year-on-year (Y-o-Y) drop in net profit to Rs 775 crore for the first quarter of FY27 (Q1FY27) on account of lower volumes and elevated incentives weighing on the profitability of British subsidiary Jaguar Land Rover (JLR).
Revenue from operations rose 9% Y-o-Y to Rs 95,799 crore during Q1FY27, supported by strong growth in the domestic business.
“JLR wholesales were down 9.2% YoY on account of temporary supply constraints, including a fire at a key component supplier, Middle east conflict and planned Jaguar wind-down. In addition to the impact of reduced volumes, JLR’s YoY profitability was impacted as Variable Marketing Expenditure
(VMEs) continued to remain elevated, partially offset by favourable structural costs,” said TMPV in a statement.
It added that the domestic business delivered strong revenue growth of 65% Y-o-Y, but elevated commodity and foreign exchange rates moderated improvement in margins. The automaker’s EBITDA margin declined 130 bps Y-o-Y to 7.4% in the reported quarter.
TMPV said that implications from global geopolitical developments and luxury segment trends continue to be key monitorables. For JLR, this remains an exciting year as it expands its portfolio into BEVs with the expected launch of four new products in the coming months. On the domestic front, while commodities are expected to remain elevated, demand remains healthy with rising EV penetration, it added.
PB Balaji, Chief Executive Officer of JLR said that they delivered first quarter profits of £109m and an adjusted EBIT margin of 2.8%. “Despite the near-term industry challenges, we continue to see strong demand for our brands and look forward to the launch of four sensational new products in the coming months: Range Rover Electric, Range Rover Sport Electric, Range Rover GT and Jaguar Type 01,” he added.
Domestic operations remain strong with PV volumes growing 46% Y-o-Y and revenue surging nearly 65% to about Rs 18,000 crore in the reported quarter. Profit before tax (PBT) for Q1FY27 was at breakeven, as compared to a loss of Rs 100 in Q1FY26.
“Supported by a strong order book, exciting product pipeline, sustained demand, and focused margin improvement initiatives, we remain confident of maintaining growth momentum and delivering sequential improvement through the rest of the year,” said Shailesh Chandra, Managing Director & CEO, TMPV.