Tata Motors on Tuesday reported higher-than-expected profits in the March quarter, buoyed by a surge in margins at Jaguar Land Rover (JLR). The Mumbai-based company’s consolidated net profit came in at Rs 8,556 crore, beating the Bloomberg estimate of Rs 7,662 crore.
The company had posted a net profit of Rs 17,673 crore in the corresponding period last year, which included Rs 9,538 crore in a deferred tax write-back.
Tata Motors’ revenue from operations, however, missed Street estimates, growing by less than 1% year-on-year to Rs 118,927 crore. Bloomberg analysts had estimated a revenue at Rs 122,618 crore.
Earnings before interest tax, depreciation and amortisation (Ebitda) stood at Rs 16,818 crore, a 1% y-o-y growth but better than the Street estimate of Rs 16,308 crore. Ebitda margin came in at 14.1%, which was nearly unchanged from the corresponding quarter last year.
PB Balaji, group chief financial officer, Tata Motors, said: “On a consolidated basis, the automotive business is now debt-free, reducing interest costs. The capex (capital expenditure) for FY26 will be in the same range of FY25, where Tata Motors will see Rs 8,400 crore and $3.8 billion in JLR.”
JLR reported its 10th consecutive profitable quarter. It saw wholesale volumes rise to 111,400 units during the quarter, a growth of 1% y-o-y. While the volumes in the UK were flat, in China (excluding CJLR), they were down by nearly 30%. North America, JLR’s biggest market, grew by 14%.
Tata Motors said that the trade agreement signed by the UK with India and the US will positively impact JLR’s operations, but it is waiting for finer details to come in. Its plant near Chennai which was envisaged to make JLR cars is being planned for the future stages.
“The tariffs and related geopolitical actions are making the global operating environment uncertain and challenging. The global premium luxury segment and the domestic market in India continue to do well and are expected to weather this storm better,” Balaji added.
The commercial vehicle business unit, where it is the market leader, saw a 3% y-o-y decline in volumes to 107,600 units during the quarter, leading to a revenue slide of nearly 1% y-o-y to Rs 21,500 crore. Ebitda margin, however, grew 20 basis points (bps) to 12.2%.
The passenger vehicle (PV) division saw a 6% y-o-y decline in global wholesales to 147,000 units, but its revenues slumped 13% y-o-y to Rs 12,500 crore. Ebitda margin improved 60 bps to 7.9%.