Tata Motors Share Price Rises Despite 30% Drop in Q1 Net Profit

Tata Motors Share Price Rises Despite 30% Drop in Q1 Net Profit

Market Performance

On Monday, August 11, Tata Motors share price saw an early uptick, trading at ₹637.85 on the NSE at 9:25 a.m., up 0.6% from the previous close.

This positive market movement came despite the company reporting weaker quarterly earnings for Q1 FY26.

Main News

Tata Motors Ltd, the automobile giant of the Tata Group, reported a net profit of ₹3,924 crore for the April–June 2025 quarter.

This reflects a 30% drop from the net profit of ₹5,643 crore reported in the same quarter last year.

Meanwhile, revenue from operations slipped 2.5% year-on-year to ₹1.04 lakh crore in Q1 FY26, down from ₹1.07 lakh crore in Q1 FY25.

Tata Motors highlighted that the drop was largely due to volume declines across all business segments, with a notable impact from its luxury vehicle unit, Jaguar Land Rover (JLR).

Company Details

  • Net Profit (Q1 FY26): ₹3,924 crore
  • Net Profit (Q1 FY25): ₹5,643 crore
  • Decline: 30%
  • Revenue from Operations (Q1 FY26): ₹1.04 lakh crore
  • Revenue from Operations (Q1 FY25): ₹1.07 lakh crore
  • Decline: 2.5%

For JLR, revenues dropped over 9% to £6.6 billion, with EBIT margin slipping 490 basis points to 4%. The company attributed this fall partly to trade tariff impacts.

Summary

Tata Motors share price showed resilience in early trade despite a significant decline in quarterly profit and revenue.

The company’s performance in Q1 FY26 was weighed down by lower sales volumes and reduced profitability, particularly in its JLR segment.

The luxury automaker faced challenges from global trade tariffs, impacting revenue and margins.

Market watchers will now closely observe the company’s strategies to tackle these headwinds in the coming quarters.

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