Tata Motors' Q1 FY 2025-26 Quarterly Results

Result Summary

• Tata Motors Ltd reported a 12.8% quarter-on-quarter (QoQ) decrease in its consolidated revenues for the quarter-ended Jun (Q1 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a decline of 3.4%.
• Its expenses for the quarter were down by 10.5% QoQ and 0.5% YoY.
• The net profit decreased 77.2% QoQ and decreased 29.7% YoY.
• The earnings per share (EPS) of Tata Motors Ltd stood at 10.7 during Q1 FY 2025-26.

Financial Statments for Q1 FY 2025-26

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Tata Motors Ltd is a leading global automobile manufacturer, part of the renowned Tata Group, which is one of India's largest conglomerates. The company is involved in the design, manufacture, and sale of a range of vehicles, including cars, utility vehicles, buses, trucks, and defense vehicles. Tata Motors has a significant presence in the Indian automotive market and also holds a substantial stake in the global market through its subsidiaries, which include Jaguar Land Rover. As of the latest data, there are no specific major developments mentioned, but Tata Motors has been known to focus on innovation and sustainability as part of its strategic initiatives.

Revenue

For the quarter ending in Q1FY26, Tata Motors Ltd reported a total income of ₹105,926 crores, which reflects a decrease of 12.8% from the previous quarter, Q4FY25, where the total income was ₹121,446.15 crores. Compared to the same quarter in the previous financial year, Q1FY25, the total income also saw a decline of 3.4%, from ₹109,623 crores. This data highlights a contraction in revenue on both a sequential and year-over-year basis. The quarter-over-quarter decline in revenue is more pronounced than the year-over-year decline, which suggests significant changes in revenue between the last quarter of FY25 and the first quarter of FY26.

Profitability

Tata Motors Ltd recorded a Profit Before Tax (PBT) of ₹5,429 crores for Q1FY26. This figure represents a substantial decrease of 40.5% from the preceding quarter's PBT of ₹9,122.76 crores and a 37.9% decline from the PBT of ₹8,741 crores in Q1FY25. The Profit After Tax (PAT) for Q1FY26 was ₹4,003 crores, showing a significant drop of 77.2% from the previous quarter's PAT of ₹17,528.59 crores and a decrease of 29.7% from ₹5,692 crores in the same quarter last year. Earnings Per Share (EPS) fell to ₹10.70, down by 76.4% from ₹45.40 in Q4FY25 and down by 26.7% from ₹14.60 in Q1FY25. These figures reflect a sharp decline in profitability over both the quarter and year, with the most substantial drop observed quarter-over-quarter.

Operating Metrics

In Q1FY26, Tata Motors Ltd reported a total expense of ₹100,441 crores, which is a decrease of 10.5% from ₹112,235.30 crores in Q4FY25. Compared to Q1FY25, where expenses were ₹100,925 crores, there is a slight reduction of 0.5%. The tax expense for Q1FY26 was ₹1,558 crores, contrasting with a negative tax figure of -₹8,159.28 crores in Q4FY25, and a tax expense of ₹3,178 crores in the same quarter of the previous year, marking a year-over-year reduction of 51.0%. These metrics demonstrate a reduction in both total expenses and tax expenses. The significant changes in tax expenses from one quarter to another can have various implications on the overall financial statements of the company.