MUMBAI: From roaring engines to grinding gears Tata Motors hit a speed bump in Q1 FY26, with global headwinds and fresh US tariffs putting the brakes on growth. The automaker’s consolidated revenue slid 2.5 per cent year-on-year to Rs 1.04 lakh crore, while EBITDA screeched down 35.8 per cemnt to Rs 9,700 crore. Pre-tax profit before exceptional items halved to Rs 5,617 crore, as free cash flow reversed into a deep Rs 12,300 crore deficit.
The group’s luxury arm Jaguar Land Rover (JLR) bore the brunt, posting its 11th straight profitable quarter but feeling the crunch of trade duties and a planned Jaguar wind-down. Revenue skidded 9.2 per cent to 6.6 billion euros, EBITDA margin shrank 650 basis points to 9.3 per cent, and EBIT margin dropped to 4.0 per cent. Profit before tax tumbled 49.4 per cent to 351 million euros, hit by tariffs of up to 27.5 per cent on UK and EU exports to the US though a late-quarter UK-US deal promises relief, slashing rates to 10 per cent from June and a subsequent EU-US pact trimming them to 15 per cent.
Back home, the commercial vehicles division held steadier, with revenue down 4.7 per cent to Rs 17,009 crore but EBITDA margins inching up 60 basis points to 12.2 per cent. Passenger vehicles struggled, with an 8.2 per cent revenue dip to Rs 10,877 crore and EBIT margins reversing to -2.8 per cent.
On a standalone basis, Tata Motors posted revenue of Rs 15,682 crore, down from Rs 16,862 crore last year, but revved up profit after tax to Rs 5,350 crore, powered partly by Rs 4,913 crore in dividends from subsidiaries. Net profit margin stood at 34.1 per cent, while operating margin clocked in at 12.28 per cent.
Despite the slowdown, the group ended the quarter with consolidated liquidity of 5 billion euros, including 1.7 billion euros in undrawn credit lines. But with inventories shifting, costs climbing, and global trade still unpredictable, the road ahead could test Tata’s grip on the wheel.
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