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Tata Motors PV profit plunges as JLR weakness and costs bite
The company posted June-quarter net profit of ₹775 crore, down 80% year over year, as total expenses grew faster than revenue amid higher raw material costs.
Tata Motors Passenger Vehicles reported a weak June-quarter performance for Q1 FY27, citing ongoing pressure in Jaguar Land Rover results and rising raw material costs. The company said consolidated net profit fell to ₹775 crore, down from ₹3,924 crore in the same period a year earlier, and also declined from ₹5,783 crore in the March quarter.
LiveMint Markets reported that revenue from operations rose 9% year over year to ₹94,827 crore, but fell 10% sequentially from ₹1,04,923 crore in the prior quarter. Tata Motors said total expenses increased 12% year over year to ₹95,338 crore, reflecting higher input costs tied to tensions in the Middle East that kept commodity prices elevated.
The operating picture showed EBITDA rising 20% year over year to ₹6,176 crore, with EBITDA margin narrowing to 6.5% from 8.8% in the corresponding quarter. The company pointed to a 9.2% drop in JLR wholesale sales in the first quarter, which it said was influenced by temporary supply constraints, including a fire at a major component supplier at the start of the quarter.
Tata Motors also linked additional JLR headwinds to market disruption related to the Middle East conflict and the planned wind-down of outgoing Jaguar models ahead of the Jaguar Type 01 launch. LiveMint Markets added that retail variable marketing expenditure rose to 7.1% from 4.1% a year earlier, and that JLR product mix improved with Range Rover, Range Rover Sport, and Defender making up 80.8% of model mix versus 77.2% a year ago.