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Tata Motors Passenger vehicle Q1FY27 reported muted performance

ICICIdirect Research 14 Aug 2026 DISCLAIMER

News: Tata Motors Passenger vehicle Q1FY27 reported muted performance. Consolidated topline for Q1FY27 stood at ~₹95,799 crore (up 9.3% YoY) with EBITDA at ~₹8,730 crore and EBITDA margins at 9.1% (down ~500 bps QoQ). JLR (TML’s overseas luxury PV arm) reported EBITDA margins of 8.1% (lower than our estimates of 9.5%). Indian PV business EBITDA margins came in at 3.7% (down 325 bps QoQ). PAT came in at ₹ 775 crore, down 80% YoY(base quarter has a gain from discontinued operations). Margin performance was under pressure due to high RM & operational cost. 

View: On the topline front, TMPV reported a divergent Q1FY27, with the India PV business delivering strong volume-led growth, while JLR remained under pressure from the Jaguar model transition, supply disruptions and weak China demand. Domestic PV volumes grew 46% YoY, nearly 2x industry growth, taking market share to 14.3%, up 200 bps, while EV volumes more than doubled and EV mix reached around 20%, highlighting continued strength in the product portfolio and green-powertrain adoption. However, domestic EBITDA margins came in at ~4% as a 4.5% commodity impact offset some of the operating leverage gains; with another 3% commodity headwind expected in Q2, near-term margin recovery remains dependent on calibrated price hikes, cost reduction and PLI benefits. JLR wholesales declined ~9% YoY, with Range Rover, Range Rover Sport and Defender still accounting for 81% of sales, while the supplier disruption has been resolved and the Jaguar run-out is nearing completion. The upcoming launch cycle of four key EV/new models, alongside the £1.7bn cost-reduction programme and focus on the US, provides a credible medium-term recovery opportunity, although China and cash generation remain key monitorable. 

Impact: Negative

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