Tata Motors’ shares rose nearly 3% on Monday, August 11, despite the company reporting a drop in June quarter earnings due to declining volumes across segments and reduced profitability, particularly at JLR. On Friday, the automaker posted a consolidated net profit of ₹3,924 crore for Q1 FY26, down 30% from ₹5,643 crore in the same quarter last year.
The stock was last trading at ₹648.20 on the NSE, up 2.29%. Group CFO PB Balaji said the company is focused on delivering a stronger second half, supported by festive demand, tariff clarity, and the upcoming demerger in October 2025.
Revenue from operations dipped 2.5% year-on-year to ₹1.04 lakh crore. Operating profit fell 33% to ₹10,224 crore, with margins narrowing to 9.79%. JLR’s revenue dropped 9.2% to £6.6 billion due to U.S. tariffs, impacting EBIT margins.
Passenger vehicle revenues stood at ₹10,900 crore, with EBITDA margin at 4%, as sales volumes dropped 10%. EV sales declined 2.1% to 16,200 units. Commercial vehicle wholesales also fell 6% to 88,000 units.
Despite challenges, Tata Motors sees positive momentum in EV bookings and plans to boost profitability through cost control, tech adoption, and stronger aftersales strategies.