Tata Motors Passenger Vehicles Ltd. reported a 31.7% year-on-year decline in net profit for the fourth quarter of FY26, amounting to Rs 5,631 crore. Despite a modest revenue increase, the company’s margins contracted. Consolidated revenue from operations rose by 7% to about Rs 1.04 lakh crore on a year-on-year basis.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) fell by 21.7% to Rs 11,212 crore, leading to an operational margin contraction to 10.7% from 14.8% in the previous year. The company attributed the profitability impact on a full-year basis to various challenges faced by JLR, including a cyber incident, tariffs, China luxury tax, VME pressures, and adverse commodities.
Dhiman Gupta, the Chief Financial Officer of Tata Motors PV, stated that the company plans to enhance resilience through product interventions and cost-side actions. He highlighted the importance of monitoring the global geopolitical environment and commodity prices. Tata Motors PV declared a final dividend of Rs 3 per equity share of Rs 2 each for FY26, with payment scheduled on or before July 14, 2026, subject to approval.
Jaguar Land Rover, the overseas arm of the group, experienced an 11.1% revenue decline and an EBITDA margin of 14% in the fourth quarter. The company’s volumes and profitability were impacted by the planned wind down of outgoing Jaguar models and the competitive automotive industry environment in China. Tata Motors aims to reduce breakeven volumes to 3 lakh units within two years and focus on 1.7 billion pounds from enterprise missions. Additionally, the automaker plans to launch a new Range Rover Electric and Jaguar in FY2027. Tata Motors PV’s stock closed 0.56% higher at Rs 338.75 on Thursday.
