Tata Motors Passenger Vehicles Ltd. recorded a 31.7% 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 shrank, as per an exchange filing. Consolidated revenue from operations rose by 7% year-on-year to about Rs 1.04 lakh crore.
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 the previous year’s 14.8%. The company cited various challenges at JLR, such as a cyber incident, tariffs, China luxury tax, VME pressures, and adverse commodities, impacting profitability.
Dhiman Gupta, the Chief Financial Officer of Tata Motors PV, mentioned plans to enhance resilience through product interventions and cost-side measures. He highlighted the importance of monitoring the global geopolitical environment and commodity prices. The company declared a final dividend of Rs 3 per equity share for FY26, subject to approval, scheduled on or before July 14, 2026.
Jaguar Land Rover, the group’s international subsidiary, experienced an 11.1% revenue decline and an EBITDA margin of 14% in the fourth quarter. Factors like the planned phase-out of outgoing Jaguar models, upcoming Jaguar launch, and competitive challenges in China impacted volumes and profitability year-on-year. Tata Motors aims to lower breakeven volumes to 3 lakh units within two years and target 1.7 billion pounds from enterprise missions. Plans include launching a new Range Rover Electric and Jaguar in FY2027.
