Mumbai, August 8, 2025 — Tata Motors Ltd. reported a sharp 63% year-on-year decline in consolidated net profit for the first quarter of FY26, falling to ₹3,924 crore from ₹10,514 crore in the same period last year. The drop was attributed to weaker margins and a slight contraction in revenue, despite the results meeting analysts’ expectations.
Total revenue from operations stood at ₹1.04 lakh crore, down 2.5% from ₹1.07 lakh crore in Q1 FY25. The company’s EBITDA also fell 35% to ₹9,724 crore, with margins narrowing to 9.3% compared to 14% in the year-ago quarter.
Sequentially, the profit after tax (PAT) declined 54% from ₹8,470 crore in Q4 FY25, while revenue dropped 13% from ₹1.19 lakh crore. Tata Motors acknowledged that the demand environment remains challenging and emphasized its strategic focus on strengthening business fundamentals, optimizing product mix, and enhancing contribution margins.
Despite the steep decline, the Q1 results were slightly above Street estimates, which had projected a net profit of ₹3,408 crore. The company remains cautiously optimistic about navigating macroeconomic headwinds through targeted operational improvements.
