Tata Motors Passenger Vehicles Q4 Results: Net Profit Falls 32% as Raw Material Costs Bite Despite JLR Recovery

Tata Motors Passenger Vehicles saw its net profit fall sharply in the January-to-March quarter, with raw material cost pressures eating into gains from stronger sales at its luxury arm, Jaguar Land Rover (JLR) . The carmaker posted a net profit of ₹5,783 crore for Q4FY26, down 32 per cent from ₹8,470 crore in the same quarter a year earlier. Revenue from operations climbed 7 per cent year-on-year to ₹1,05,447 crore, against ₹98,377 crore in Q4FY25.

In a stock exchange filing, Tata Motors said: "Global geopolitical and regulatory challenges will need to be monitored for supply-chain risks and cost headwinds. We will leverage on healthy demand and continue to deliver profitable and industry-beating growth in domestic business, whilst mitigating the margin headwinds through structural cost reductions. We will continue to step-up growth at JLR, by leveraging House of Brands in focused markets, with flawless delivery of exciting launches over next 18 months."

The company also declared a dividend of ₹3 per share.

Shailesh Chandra, Managing Director and Chief Executive of Tata Motors Passenger Vehicles, struck a more upbeat tone when reflecting on the broader year. 

"FY26 has been a landmark year for the Company, marked by multiple defining milestones. We achieved our highest ever annual sales of over 6.4 lakh units, delivering industry beating growth of 15% YoY and emerging as the #2 ranked player in H2 FY26. In electric vehicles, we further reinforced our leadership position with a sustained focus on strengthening the overall value proposition of our vehicles and holistically addressing adoption barriers, accelerating the journey towards EVs becoming a mainstream choice for customers.

"This resulted in robust 43% year on year growth and our highest ever annual EV volumes of over 92,000. Q4 FY26 was an outstanding quarter, in which we registered 37% year on year growth to record our highest ever quarterly sales of over 200,000 units. During the quarter, we delivered 30,000 units of the Sierra and launched the new versions of the popular Punch and Punch.ev, to strong customer acclaim. This consistent growth has helped us drive sequential margin improvement throughout the year. Going ahead, we will continue to build on this strong momentum, deliver industry beating growth and enhance profitability through focused actions, while closely monitoring geopolitical developments to mitigate supply-side risk," he said.

Chief Financial Officer Dhiman Gupta described the full financial year as uneven. "Overall, FY26 was a tale of two halves. While domestic business witnessed a strong momentum post GST 2.0, at JLR we witnessed several headwinds including tariffs and the cyber incident. In Q4 FY26, all the consolidated financial metrics improved significantly as JLR operations recovered post the cyber incident and domestic business continued its positive trajectory. Going ahead, we will continue to build on our resilience through a slew of product interventions, and cost-side actions, while the global geopolitical environment and commodity prices continue to remain key monitorable," Gupta noted.