Jaguar Land Rover (JLR) parent Tata Motors has disclosed a significant drop in its quarterly net profit, primarily due to lower demand and the imposition of US trade tariffs. The automotive company recorded a net profit of Rs40.

Jaguar Land Rover parent Tata Motors Ltd. reported a slightly lower-than-expected quarterly profit, as softer demand and US trade tariffs took a toll on its domestic and global businesses.

According to data compiled by Elara Securities Research, JLR reported a Q1 tariff impact of €254 million, representing 3.8% of its total sales.

JLR is still paying the upper level on tariffs on Land Rover Defender imports to the US, the company’s biggest market, as the EU-negotiated reduction to 15% has yet to be implemented, JLR CFO Richard Molyneux told analysts on the Tata Motors first-quarter earnings call on Friday.

Jaguar Land Rover's profitability was significantly impacted by tariffs imposed by the US, leading to a 30% drop in Tata Motors' overall profit. Anticipated new trade deals between the US and both the UK and EU are expected to alleviate the financial strain in future quarters.

Tata Motors Ltd. (TML) posted a 63% year-on-year decline in consolidated net profit for the quarter ended June 30, 2025, as US trade tariffs on Jaguar Land Rover (JLR) vehicles and softer passenger vehicle demand weighed on earnings.

JLR took a hit from Donald Trump's tariffs on automobile imports from the UK. However, following the US-UK trade pact, the impact will come down, Tata Motors said.

Total expenses in Q1 FY26 stood at Rs 1 lakh crore, marginally higher than the Rs 99.89 thousand crore reported in the same quarter of the previous fiscal year.

Tata Motors Ltd.'s consolidated net profit dropped 63% in the June quarter but still met the Street's expectations. The Nexon maker's profit fell to Rs 3,924 crore in the three months ended June on the back of revenue that also declined 2.

Indian automaker Tata Motors posted a 63% slump in quarterly profit on Friday, its fourth straight quarter of decline, as U.S. tariffs hurt businesses that were already reeling from weak sales.