Tata Motors Q1 net profit drops 30% to ₹3,924 crore due to tariff impact on JLR

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JLR’s profit fefore tax was £351 million for the quarter, down 49.4% YoY, impacted by U.S. tariffs and foreign exchange headwinds.

JLR’s profit fefore tax was £351 million for the quarter, down 49.4% YoY, impacted by U.S. tariffs and foreign exchange headwinds.
| Photo Credit: PRIYANSHU SINGH

Tata Motors Ltd. for the first quarter ended June 30, 2025 reported 30.46% drop in consolidated net profit at ₹3,924 crore as compared with ₹5,643 crore in the year ago period. 

For the quarter the company’s revenue decreased 2.45% Year on Year (YoY) to ₹1,03,792 crore. 

P.B. Balaji, Group Chief Financial Officer, Tata Motors 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,” he said.

Tata Motor’s subsidiary Jaguar Land Rover (JLR) delivered 11th successive profitable quarter amid challenging global economic conditions.

Its revenue for the quarter at £6.6 billion dropped -9.2% impacted by significant new U.S. trade tariffs and planned legacy Jaguar wind down; EBITDA at 9.3% was down 650 bps.

Profit Before Tax was £351 million for the quarter, down 49.4% YoY. It was impacted by U.S. tariffs and foreign exchange headwinds.

“U.S. trade tariffs had a direct and material impact on profitability and cash flow in the period. The U.S.-U.K. trade deal will significantly reduce the financial impact of U.S. tariffs going forward. The decrease in profitability YoY was impacted by the introduction of U.S. tariffs and FX headwinds in the period,” the company said.

Tata Motors’ Commercial Vehicles business saw domestic volumes going down by 9% while exports were up by 68%. Revenues were down by 4.7% YoY. 

Girish Wagh, Executive Director Tata Motors Ltd. said, “We witnessed a decline in domestic sales volumes, reflecting broader market softness and delayed fleet replacement cycles, while segments like Buses and Vans showed resilience and our International Business delivered growth.

The passenger vehicles (PV) business experienced volume pressures, particularly in May and June, with flat growth reflecting continued softness in demand.

In the quarter wholesale volumes decreased 10.1%, on account of industry decline & transitions for new models of Altroz, Harrier & Safari, even as the company continued to ensure controlled channel inventory growth.

Revenues dropped 8.2% YoY on account of drop in volumes. EBITDA margin was down by 180 bps YoY at 4.0% while EBIT margins declined by 310 bps YoY to 2.8%. 

Shailesh Chandra, Managing Director TMPV and TPEM said, “The quarter was a subdued one for the passenger vehicle industry, with volume pressures persisting across most segments. Demand softness weighed on overall performance, although the Electric Vehicle category remained a bright spot, supported by new…



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