Tata Motors Q1 Results: Profit Plunges 63% But Meets Estimates
Tata Motors' margin narrowed to 9.3% versus 14% in the year-ago period.
Tata Motors Ltd.'s consolidated net profit dropped 63% in the June quarter but still met the Street's expectations.
The Nexon maker's net profit fell to Rs 3,924 crore in the three months ended June on the back of revenue that also declined 2.5% year-on-year to Rs 1.04 lakh crore, according to an exchange filing on Friday. Analysts polled by Bloomberg had estimated the top line at Rs 1.01 lakh crore and the bottom line at Rs 3,972.1 crore.
Tata Motors Q1 Highlights (Consolidated, YoY)
Revenue down 2.5% to Rs 1.04 lakh crore versus Rs 1.07 lakh crore (Bloomberg estimate: Rs 1.01 lakh crore)
Ebitda down 35% to Rs 9,724 crore versus Rs 14,972 crore (Estimate: Rs 10,717.6 crore)
Ebitda margin at 9.3% versus 14% (Estimate: 10.5%)
Net profit down 63% to Rs 3,924 crore versus Rs 10,514 crore (Estimate: Rs 3,972.1 crore)
Tata Motor's performance in the quarter was impacted by volume decline in all businesses and a drop in profitability primarily at JLR, said a press release. The company's profitability has largely been impacted by the US auto tariffs, as per an investor presentation.
"Despite stiff macro headwinds, the business delivered a profitable quarter, supported by strong fundamentals. As tariff clarity emerges and festive demand picks up, we are aiming to accelerate performance and rebuild momentum across the portfolio. Against the backdrop of the upcoming demerger in October 2025, our focus remains firmly on delivering a strong second-half performance," said Group Chief Financial Officer PB Balaji.
On Friday, Tata Motors shares fell 2.43% to Rs 633.70 apiece on the NSE even as the benchmark Nifty 50 ended the day 0.95% lower at 24,363.30 points.
