On a consolidated basis, revenue rose 9% year-on-year to ₹95,799 crore from ₹87,677 crore. However, earnings before interest, tax, depreciation, and amortisation (EBITDA) declined 20% to ₹6,176 crore from ₹7,758 crore, while the EBITDA margin contracted to 6.5% from 8.8% in the year-ago quarter.
Higher raw material costs and adverse foreign exchange movements weighed on profitability. The company reported a forex loss of ₹150 crore in Q1, compared with a gain of ₹520 crore a year earlier.
India passenger vehicle business
The domestic passenger vehicle business continued to see strong volume growth. Volumes increased 46% (YoY), although they declined 9% sequentially.
Tata Motors’ Vahan market share stood at 14.3%, while its market share in electric vehicles (EV) remained steady at 39%.
The company said domestic demand remains healthy, supported by rising EV penetration, although commodity costs are expected to remain elevated.
Jaguar Land Rover performance
JLR remained a drag on the consolidated performance, with revenue declining 10% YoY to £5,973 million from £6,604 million.
EBITDA fell 21% to £484 million from £616 million, while the EBITDA margin declined to 8.1% from 9.3%.
JLR volumes fell 9% YoY and 17% QoQ, although realisations remained flat year-on-year and improved 5% sequentially.
JLR’s free cash flow stood at negative £998 million in Q1, with a closing cash balance of £1.7 billion.
The company said the current year remains an exciting one for JLR, with the luxury automaker set to expand its battery electric vehicle portfolio. Upcoming launches include the Range Rover Electric, Range Rover Sport Electric, Range Rover GT and Jaguar Type 01.
Brokerage firm Nuvama has retained its ‘Buy’ rating on Tata Motors PV, while cutting its price target to ₹450 from ₹470.
The brokerage said that India PV EBITDA jumped 74% YoY to ₹760 crore, but came in below its estimates due to higher employee costs and other expenses. JLR EBITDA declined around 22% to £481 million, but was ahead of estimates, supported by an improvement in gross margins.
Nuvama has lowered its consolidated EBITDA estimates for FY27 and FY28 by around 3% each, factoring in a lower margin.
The brokerage expects India PV revenue and EBITDA to clock compounded annual growth rates (CAGRs) of 23% and 41%, respectively, by March 2028, driven by higher volumes, production-linked incentives, and an improved product mix.
For JLR, Nuvama expects revenue and EBITDA to grow at 14% and 52% CAGR, respectively, over FY26-28E.
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