Tata Motors Passenger Vehicles (500570) Q4 25/26 earnings summary

Executive summary

• Achieved record annual volumes in passenger and electric vehicles, with strong market share gains and new product launches driving growth in FY26.

• Consolidated Q4 FY26 revenue rose 7.2% YoY to ₹105,447 Cr, with EBITDA at ₹13,900 Cr and free cash flow of ₹11,400 Cr, despite operational and geopolitical challenges, including a cyber incident.

• FY26 consolidated revenue declined 8.3% YoY to ₹335,582 Cr, with EBITDA margin at 6.8% and EBIT margin at 1.1%.

• JLR Q4 revenue fell 11.1% YoY to £6.9bn, with EBIT margin at 9.2%; Tata PV Q4 revenue surged 49% YoY to ₹18,742 Cr, with EBIT margin at 4.7%.

• Consolidated net debt stood at ₹30,700 Cr at year-end, mainly due to JLR production stoppages.

Financial highlights

• Q4 consolidated revenue grew 7.2% YoY to ₹105,447 Cr; full-year revenue declined 8.3% YoY to ₹335,582 Cr.

• Q4 EBITDA margin at 13.1%, down 130 bps YoY; full-year EBITDA margin at 6.8%, down 660 bps YoY.

• JLR FY26 revenue dropped 20.9% YoY to £22.9bn, with EBIT margin at 0.7%; Tata PV FY26 revenue grew 20.7% YoY to ₹58,465 Cr, with EBIT margin at 1.4%.

• Consolidated FY26 net profit (before exceptional gain on disposal) was ₹8,556 Cr; EPS from continuing and discontinued operations was ₹78.80.

• Dividend of ₹3 per share recommended, with a cash outflow of ₹1,105 Cr.

Outlook and guidance

• Focus on profitable growth, new product launches, and cost efficiencies in FY27.

• JLR aims to reduce break-even volumes to 300k in two years, targeting £1.7bn in savings and launching new models including Range Rover Electric and Jaguar Type 01.

• Investment spend planned at £18bn over five years from FY24.

• Domestic demand expected to remain robust, led by SUVs, CNG, and EVs; geopolitical and commodity risks remain key monitorables.