Tata Motors reported a sharp 62.2% year-on-year drop in consolidated net profit to Rs 4,003 crore for the June quarter (Q1 FY26), hurt by volume decline across segments, a fall in Jaguar Land Rover earnings, and the absence of a large one-time gain booked last year.In Q1 FY25, the company had posted a net of Rs 10,587 crore, aided by a Rs 4,975 crore gain from the sale of discontinued operations following the amalgamation of Tata Motors Finance Ltd with Tata Capital Ltd, according to PTI. This year, with that base effect absent and macro challenges in play, earnings came under pressure.“Despite stiff macro headwinds, the business delivered a profitable quarter, supported by strong fundamentals,” said Tata Motors Group CFO P.B. Balaji. “As tariff clarity emerges and festive demand picks up, we are aiming to accelerate performance and rebuild momentum across the portfolio.”JLR revenue fell 9.2% to £6.6 billion in Q1, impacted by new US trade tariffs on UK- and EU-manufactured vehicles, along with the planned wind-down of legacy Jaguar models.“We are grateful to the UK and US governments for delivering at speed the new UK-US trade deal, which will lessen the significant US tariff impact in subsequent quarters,” said outgoing JLR CEO Adrian Mardell. He added that the EU-US trade agreement announced in July would offer further relief.JLR reaffirmed its commitment to the Reimagine strategy, with plans to invest £3.8 billion this fiscal for development of next-generation EVs, including new electric Range Rover and Jaguar models.Passenger vehicle (PV) wholesale volumes declined 10.1% to 1,24,800 units in Q1, with the company citing overall industry softness and model transitions for the Altroz, Harrier and Safari.“Q1 FY26 was a subdued quarter for the passenger vehicle industry, with volume pressures persisting across most segments,” said Shailesh Chandra, MD of Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility. “The EV category, however, remained a bright spot, supported by new launches and growing customer interest.”Tata Motors said it is well-positioned to leverage upcoming hatchbacks and SUVs to strengthen its PV portfolio in the second half, while continuing to build on EV momentum.In the commercial vehicle (CV) business, wholesales were down 6% to 88,000 units. The company pointed to weak demand in key segments and a slower fleet replacement cycle.“Q1 FY26 was a challenging quarter for the commercial vehicle industry,” said Executive Director Girish Wagh. “Domestic volumes declined due to broader market softness, but segments like Buses and Vans showed resilience, and our International Business delivered growth.”The company said CV volumes could recover as monsoon conditions normalise, repo rates ease, and infrastructure activity picks up pace in the second half of the year.
