Market Ends Lower, Tata Motors, ICICI Bank, Voltas, IDFC First Bank, Coforge Stocks in Focus

Tata Motors Q1 consolidated net profit fell 63% to Rs 3,924 crore, ICICI Bank increased minimum balance requirement, IDFC First Bank received RBI nod for investment, Coforge clarified no material impact on financial performance, and Voltas reported a 58% YoY drop in net profit at Rs 141 crore due to unseasonal weather and subdued summer demand.

Tata Motors Ltd. (TML) reported its Q1 FY26 financial results, with a significant decline in consolidated net profit. The company's net profit fell by 63% to Rs 3,924 crore, compared to Rs 11,122 crore in the corresponding period last year. The decline was driven by a combination of volume declines across all businesses and a drop in profitability, particularly at Jaguar Land Rover (JLR).

Revenue for the quarter stood at ₹104.4K Cr, a 2.5% decrease from the previous year. The company's EBITDA margin dropped to 9.2%, down by 480 basis points, while EBIT margin declined to 4.3%, down by 370 basis points. JLR's revenue decreased by 9.2% to £6.6 billion, with EBITDA margin falling to 4.0%, down by 650 basis points. Tata Commercial Vehicles (Tata CV) revenue decreased by 4.7% to ₹17.0K Cr, with EBITDA margin improving to 12.2%, up by 60 basis points. Tata Passenger Vehicles (Tata PV) revenue declined by 8.2% to ₹10.9K Cr, with EBITDA margin falling to 4.0%, down by 180 basis points.

Despite the challenges, Tata Motors reported a PBT (bei) of ₹5.6K Cr, benefiting from a sharp reduction in finance costs. The company also announced the completion of its demerger scheme, with the effective date set for October 1, 2025. Additionally, Tata Motors announced the acquisition of Iveco Group N.V. (excluding Defence) shares via a voluntary tender offer, valued at Eur 3.8 billion, subject to obtaining the required clearances.

Looking ahead, Tata Motors expects the demand situation to remain challenging and plans to focus on strengthening business fundamentals and mitigating the impact of tariffs by leveraging brand strength. The company aims to accelerate performance and rebuild momentum across the portfolio as tariff clarity emerges and festive demand picks up.

References:
[1] https://www.tatamotors.com/press-releases/tata-motors-consolidated-q1-fy26-results/