Tata Motors Posts First Revenue Dip in Five Years Amid $1.1-Billion Headwind from Jaguar Land Rover Challenges

Tata Motors Passenger Vehicles Suffers First Annual Revenue Decline in Five Years

Tata Motors Passenger Vehicles Ltd has reported its first annual revenue decline in five years, with an operating loss in FY26, due to additional costs from US tariffs and a cyberattack at its British luxury car brand Jaguar Land Rover (JLR).

According to the company's results released on 14 May, Tata Motors PV's full-year revenue fell 8% to ₹3.35 trillion, on the back of a 23% decline in volumes at JLR to 308,000 units. The impact of the cyberattack in September and higher US tariffs on JLR imports led to an operating loss of ₹1,377 crore from a profit of ₹19,394 crore in FY25.

The company's full-year net profit surged 193% to ₹82,645 crore, bolstered by a one-time exceptional gain of ₹82,616 crore following the demerger of its commercial vehicle unit.

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JLR accounts for more than 75% of the company's profits. Despite a challenging year, JLR's performance remained resilient in all quarters. The company is sticking to its £18-billion investment plan for FY24-FY29, but may reprioritise its EV strategy across different markets following a broader industry trend of scaling back electric vehicle investments.

Comparison of Automotive Companies' Revenue Growth

While troubles at JLR weighed on Tata Motors, its domestic business fired on all cylinders, with a 15% growth in sales to 640,000 units, making it India's third-largest passenger-vehicle firm. Tata Motors PV's standalone results, which exclude JLR's numbers, saw revenue surge by 17% to ₹57,859 crore and operating profit increase 149% to ₹3,839 crore.

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Domestic rivals Maruti Suzuki and Mahindra and Mahindra also reported strong growth. Maruti's consolidated FY26 revenues rose 20% to ₹1.83 trillion, while net profit inched up 1% to ₹14,679 crore. Mahindra's revenue surged 26% year-on-year to ₹1.98 trillion, while net profit jumped 32% to ₹18,621 crore.

Shailesh Chandra, managing director and chief executive at Tata Motors PV, said, "We are exiting the year with a strong momentum. The performance this year has been the result of many foundational actions that we had been taking over the past 18 to 24 months as well as agile and disciplined execution, especially after GST 2.0."

Chandra noted that the company aggressively upgraded its servicing capabilities to keep pace with rising consumer demand as its network and business operations expanded. "Nearly 1,600 bays have been added. And that has really eased out the stress that we had in terms of service capacity," Chandra said.

Tata Motors PV results were released after trading hours. Earlier, its stock rose 0.3% as against a 0.6% gain in Nifty Auto.