Tata Motors eyes strong second-half as tariff clarity and festive demand boost outlook
Tata Motors CFO PB Balaji said the company aims to rebuild momentum and deliver a strong second-half performance as tariff clarity emerges and festive demand strengthens, despite a 30% drop in quarterly profit.
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Tata Motors on Friday reported a sharp decline in quarterly earnings, with falling volumes across segments and tariff-related pressures at Jaguar Land Rover weighing on results.
Net profit for the April-to-June quarter fell 30 percent from a year earlier to ₹3,924 crore, compared with ₹5,643 crore in the same period last year. Revenue from operations slipped 2.5 percent to ₹1.04 lakh crore, though the figure beat estimates of a steeper 8.7 percent drop, according to a Moneycontrol poll of brokerages.
EBITDA dropped 36 percent to ₹9,700 crore. The company attributed the decline to lower volumes in all businesses and reduced profitability at Jaguar Land Rover, where revenues fell over 9 percent to £6.6 billion and EBIT margin contracted 490 basis points to 4 percent. Tata Motors said the luxury carmaker’s performance was dented by U.S. tariffs announced by Donald Trump.
Commercial vehicle revenues fell 4.7 percent to ₹17,000 crore, though EBITDA margins improved to 12.2 percent, aided by better realizations and cost savings. Passenger vehicle revenues declined 8.2 percent, reflecting softer industry demand and a transition to new models.
"With the demand situation likely to remain challenging, we will continue to focus on strengthening the business fundamentals and mitigate the impact of tariffs by leveraging the brand strength to drive a better mix, and targeted actions to improve contribution margins," the company said in an exchange filing.
PB Balaji, Tata Motors’ group chief financial officer, said: "Despite stiff macro headwinds, the business delivered a profitable quarter, supported by strong fundamentals. As tariff clarity emerges and festive demand picks up, we are aiming to accelerate performance and rebuild momentum across the portfolio. Against the backdrop of the upcoming demerger in October 2025, our focus remains firmly on delivering a strong second-half performance."
