JLR drags Tata Motors PV revenue down 8 percent for FY26

Tata Motors Passenger Vehicles posted a sharp decline in FY26 consolidated financials after a cyberattack, higher tariffs and weakness in China hurt its British luxury unit JLR, overshadowing strong growth in the Indian business.The carmaker, which was the second-largest in India by volumes in April, said consolidated revenue for FY26 fell 8.3 percent from a year earlier to Rs3,35,582 crore, while Ebitda margin fell to 6.8 percent, from 13.4 percent in fiscal 2025.At Rs82,645 crore, net profit jumped 194 percent, aided by a one-time gain of Rs82,616 crore from the demerger of its commercial vehicles business from the holding company into TML and amalgamation of Tata Motors Passenger Vehicles into the holding company.Profit before tax and exceptional items dropped to Rs2,519 crore from Rs28,650 crore a year earlier.Tata Motors said JLR’s performance was hit by multiple headwinds, including a cyber incident that disrupted production, higher US tariffs, luxury tax pressures in China, increased marketing expenses and rising commodity costs.JLR’s revenue for FY26 fell 20.9 percent to 22.9 billion pounds, while Ebita margin contracted 760 bps to 6.7 percent from a year earlier. Profit before tax and exceptional items slumped to 14 million pounds from 2.5 billion pounds.Also Read: Honda posts first ever annual loss, bets on India for turnaroundThe India passenger vehicle business, however, remained a bright spot, posting record annual sales of more than 6.4 lakh units in FY26, helped by strong demand for SUVs and electric vehicles (EVs). EV sales crossed 92,000 units during the year, while the company had a 40.2 percent share of India’s EVs.Revenue rose 20.7 percent to Rs58,465 crore in FY26, while profit before tax and exceptional items increased to Rs1,437 crore from Rs1,083 crore a year earlier. Ebit margin improved 50 basis points to 1.4 percent.Its overall market share rose to 14.2 percent in the March-ended quarter, helping it secure the No 2 position in India’s passenger vehicle market in the second half of FY26.For the fourth quarter, consolidated revenue rose 7.2 percent to Rs1.05 lakh crore, aided by a recovery in JLR production and record domestic volumes. Profit before tax and exceptional items fell by Rs3,031 crore year-on-year to Rs7,167 crore.Shailesh Chandra, MD and CEO of Tata Motors Passenger Vehicles, said the improvement in profitability has been supported by operating leverage from higher volume, favourable product mix, structural cost reduction initiatives, and approval from production-linked incentive. Speaking on a post-earnings media call, he said the domestic carmaker was able to achieve that despite a challenging pricing and commodity environment due to the West Asia crisis.The demand momentum from GST cuts has sustained into May, he said, and the crisis in West Asia hasn’t had an impact on purchases yet.“There might be some changes in terms of powertrain preference. Maybe electric or CNG might be preferred if there is an increase in petrol/diesel prices.” But overall sentiment is positive, he said.On capex, he said typically the carmaker guides for a capex of 8 percent of revenue. “Since we are going on a more aggressive path, it can be 1 percent higher than that.”Tata Motors’ India passenger vehicle business reported quarterly sales of 2.02 lakh units, up 37 percent from a year earlier, with revenue rising 49 percent to Rs18,742 crore. Ebita margin expanded 150 basis points to 9.4 percent.The board recommended a final dividend of Rs3 a share for FY26.