Tata Motors PV posts first revenue dip in five years as JLR faces $1.1-billion headwind

Tata Motors Passenger Vehicles Ltd recorded its first annual revenue decline in five years and recorded an operating loss in FY26; It was hit by more than $1 billion in additional costs from US tariffs and a cyber attack on British luxury car brand Jaguar Land Rover (JLR).

Tata Motors PV’s full-year revenue fell 8%, according to the company’s results released on May 14. ₹3.35 trillion after volumes at JLR fell 23% to 308,000 units. Impact of cyber attack in September and high US tariffs on JLR imports ₹1,377 crore profit earned ₹19,394 crore in FY25.

The company’s full year net profit increased by 193% ₹82,645 crore backed by one-time extraordinary gains. ₹82,616 crore after demerger of commercial vehicle unit.

While JLR did not specify the exact damage caused by US President Donald Trump’s tariffs, Tata Group chairman Natarajan Chandrasekaran stated at last year’s annual general meeting that the tariff increases had cost the company approximately £600 million ($808 million). In February, the company reported that a cyberattack had cost it more than £260 million ($350 million) after operations at its manufacturing sites in the United Kingdom and Europe were disrupted.

Richard MolyneuxJLR Chief Financial Officer said in a press conference that it had been a challenging year for JLR, but the company’s performance remained resilient in each quarter. JLR accounts for more than 75% of the company’s profits. “After the cyber incident, production returned to normal… [there was a] Decline in profitability, particularly due to cyber incident, ongoing impact of US tariffs, planned reduced Jaguar volumes and challenging market conditions in Chinahe added.

While JLR remains committed to its £18bn investment plan for FY24-29, management has indicated it may reprioritise its EV strategy in different markets following a wider industry trend to reduce investment in electric vehicles.

Asked how he would evaluate the company’s EV strategy, he said: “I think there will inevitably be some change in the prioritization of that, as we know globally, particularly for the US market, we need to keep internal combustion engine (ICE) vehicles in our portfolio for longer… So there may be some change in exactly how we spend that money.”

Over the past six months, automakers including Ford, General Motors, Stellantis and Honda have canceled over $60 billion in investments after EV adoption failed to meet their initial expectations.

FY26 saw Jaguar Land Rover appoint a new chief executive, PB Balaji, who took over in November following the departure of Adrian Mardell. Since his takeover, Balaji has had to deal with challenges such as declining sales in China, cyber attack and rising US tariffs.

“We have recorded a good recovery in the fourth quarter with production returning to normal levels, which demonstrates the commitment of our employees, suppliers and retail partners,” Balaji said of Thursday’s results.

“Looking ahead to FY27, we are focused on driving growth and reducing breakeven volumes through our well-differentiated suite of brands, while we launch a range of exciting products, starting with the introduction of the New Range Rover Electric, our first EMA (electric modular architecture) products and the highly anticipated new Jaguar.”

Domestic business firing on all cylinders

Troubles at JLR have weighed on Tata Motors, masking growth in its domestic business, which has seen a 15% increase 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 figures, saw its revenue rise by 17%. ₹57,859 crore and operating profit increased by 149%. ₹3,839 crore.

This was in line with the performance of its rivals Maruti Suzuki, Mahindra and Mahindra. Maruti’s FY26 consolidated revenues up 20% ₹Net profit increased by 1% to 1.83 trillion ₹14,679 crore. Mahindra’s revenue increased 26% YoY ₹Net profit increased by 32% to 1.98 trillion ₹18,621 crore.

Hyundai’s consolidated net profit fell by 4 percent ₹5,432 crore and recorded 2% growth in annual revenue ₹70,763 crore.

Shailesh Chandra, managing director and managing director of Tata Motors PV, said in the post-results press conference: “We are exiting the year with strong momentum. This year’s performance has been the result of agile and disciplined execution along with many key actions we have taken in the last 18 to 24 months, especially after GST 2.0. We aim to deliver industry-leading growth next year.”

The company is aggressively upgrading its service capabilities to keep up with increasing consumer demand as its network and business operations expand, Chandra said. “About 1,600 bays have been added. That has really alleviated the stress we were experiencing in terms of service capacity,” said Chandra.

The company emphasized that commodity cost inflation remains a significant challenge and is intensifying cost reduction efforts within the company. Chandra expects rising fuel prices and inflation to boost EV momentum; This is a trend that favors the company as the current market leader.

Tata Motors PV results were announced after trading hours. Earlier, its shares rose 0.3% against Nifty Auto’s gain of 0.6%.