Tata Motors Passenger Vehicles Q1 profit plunges 80 pc to Rs 775 crore
Mumbai, Aug 13
Tata Motors Passenger Vehicles Limited on Thursday reported a sharp decline in profitability for the first quarter of FY27, with consolidated net profit falling more than 80 per cent year-on-year.
According to the company's regulatory filing, consolidated net profit dropped 80.3 per cent to Rs 775 crore in the June quarter from Rs 3,924 crore in the corresponding period last financial year (Q1 FY26).
The automaker's revenue rose 9.3 per cent year-on-year (YoY) to Rs 95,799 crore, compared with Rs 87,677 crore in the year-ago quarter, it added in its filing.
At the operating level, performance remained under pressure. EBITDA declined 17.2 per cent to Rs 6,326 crore during the quarter from Rs 7,639 crore a year earlier.
As a result, the company's EBITDA margin narrowed to 6.6 per cent, compared with 8.7 per cent in the corresponding quarter of the previous financial year, as per the filing.
Commenting on the performance, Shailesh Chandra, Managing Director & CEO, Tata Motors Passenger Vehicles Limited said that Q1 FY27 marked a strong start to the year for Tata Motors PV, with industry-beating 46 per cent YoY volume growth driven by robust customer demand and the success of our recent launches.
"Our leadership in electric mobility strengthened further, with record quarterly EV volumes of over 34,000 units and 112 per cent YoY growth," he added.
"The new avatars of Tiago and Punch have received a strong response, with robust bookings across powertrains, reinforcing the strength of our multi-powertrain strategy. We are encouraged by the growing adoption of EVs across segments and the rapid mainstreaming of electric mobility in India," Chandra noted.
Dhiman Gupta, Chief Financial Officer, TMPVL said: "Q1 FY27 was a quarter where we focused on carrying forward the growth momentum in the domestic business and preparing for an important transition year at JLR."
— IANS
Reader Comments
Good to see Tata Motors pushing EVs so aggressively. But why is profit falling so much when revenue grew 9%? They need to control costs somewhere. Also, hoping the Tiago and Punch new models sell well - people love them in my city! 🚗
As a Tata Motors shareholder, this is disappointing. The JLR transition is eating into profits. However, I appreciate their long-term EV strategy - 112% growth in EV sales is impressive. Need to be patient with Tata, they're building for the future.
Interesting to see an Indian company leading the EV revolution. The profit drop is concerning but the fundamental story is strong - record volumes, growing market share. Tata's commitment to electric mobility is exactly what India needs for its climate goals.
The EBITDA margin compression from 8.7% to 6.6% is worrying. But we have to understand that Tata is investing heavily in new platforms and EVs. The domestic business is growing at 46% YoY - that's solid. Just hope the JLR transition doesn't drag them too much. 🤞
Good to see Indian automakers focusing on electric vehicles. My family recently bought a Tata EV and the experience has been great. The 34,000 EV sales in Q1 shows the demand is real. Profit will come back once they scale up production.
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