Tata Motors Passenger Vehicles Ltd
(NSE:TMPV)
₹
349.6
+6.6 (+1.92%)
Market Cap: 1.29 Tn
Enterprise Value: 1.69 Tn
PE Ratio: 0
PB Ratio: 1.15
GF Score: 70/100 
Q1 2027 Tata Motors Passenger Vehicles Ltd Earnings Call Transcript
Aug 13, 2026 / 01:00PM GMT
Release Date Price:
₹349.6
(+1.92%)
Key Points
Positve
- Tata Motors Passenger Vehicles Ltd (BOM:500570) achieved a 46% year-on-year volume growth in Q1 FY27, doubling the industry growth rate and strengthening its position as the number 2 player in the Indian passenger vehicle market.
- The company's EV segment delivered record volumes of over 34,000 units in Q1, with market share increasing to 43% in July, driven by strong demand and a robust order book.
- The company's product portfolio remains competitive, with models like Punch and Nexon ranking among the top 3 best-selling vehicles in India, and new launches like Tiago EV and Sierra EV receiving positive market reception.
- The company is actively managing commodity cost pressures through a combination of calibrated price increases, accelerated cost reduction programs, and expected PLI accruals from Q3, aiming to offset the 4.5% commodity impact in Q1.
- The company's India business remains net cash positive with strong liquidity, supported by favorable working capital releases and a healthy FCF of INR1,100 crores in Q1.
- The company is expanding its export business, targeting 2x growth in FY27, following a 4x growth in the previous year, with new market entries like South Africa contributing to this momentum.
- The company's EV order book is strong, with bookings increasing 3.5x since the pre-crisis period, and production capacity is being ramped up to meet demand, with monthly EV production crossing 15,000 units.
- The company is investing in debottlenecking and capacity expansion to address supply constraints, with plans to increase production to 70,000 units per month in the coming months.
- The company's focus on greener powertrains aligns with industry trends, as EVs and CNG vehicles now account for 31% of industry sales, positioning the company to capitalize on this structural shift.
- The company's management remains confident in sustaining higher double-digit growth in FY27, supported by a positive demand outlook and upcoming festive season.
Negative
- Tata Motors Passenger Vehicles Ltd (BOM:500570) faced a significant commodity inflation impact of 4.5% in Q1, which offset gains from fixed cost leverage and material cost reductions, keeping EBITDA margins flat at 4%.
- The company expects an additional 3% commodity cost impact in Q2, which will require further price increases and cost reductions to mitigate, potentially affecting competitiveness.
- Supply chain constraints, including engine casting issues and sheet metal capacity pressures, have limited the company's ability to fully meet demand, particularly for models like Sierra.
- The company's JLR segment reported a 10% decline in wholesales year-on-year, impacted by the Middle East conflict, supplier fire, and Jaguar model run-out, leading to a significant cash outflow.
- JLR's profitability was negatively affected by higher BME (marketing expenses) in China and the US, as well as unfavorable FX and commodity hedge losses, resulting in a PBT decline to GBP109 million.
- The company's JLR net debt increased to GBP13.6 billion, and the credit rating remains on negative watch, which could impact the cost of debt.
- The China market remains challenging for JLR, with a 25% year-on-year decline in wholesales, and the company expects conditions to worsen before stabilizing.
- The company's ability to pass on commodity cost increases is limited by competitive pressures, as it has only taken a 1% cumulative price increase so far, which may not fully offset the cost impact.
- The company's PLI accruals are currently limited to only two products, with new launches awaiting certification, which may delay the full benefit of PLI incentives until Q3 or Q4.
- The company's JLR EV launches are expected to have a minimal impact on FY27 wholesales, with only about 12,000 units penciled in, and the full volume contribution is deferred to FY28.
Operator
Good day and welcome to Tata Motors Passenger Vehicles Limited Q1 FY27 earnings call. Today we have with us Mr. Shailesh Chandra, MD and CEO, Tata Motors Passenger Vehicles Limited, Mr. PB Balaji, CEO Jaguar Land Rover; Mr. Dhiman Gupta, CFO, Tata Motors Passenger Vehicles Limited; and Mr. Richard Molyneux, CFO, Jaguar Land Rover; and we also have our colleagues from the Investor Relations team.
Today, we plan to walk you through the results presentation followed by Q&A. (Operator Instructions) I now hand over to Mr. Dhiman Gupta to take over. Over to you, sir.
Dhiman Gupta
Tata Motors Passenger Vehicles Ltd - Chief Financial Officer
Thank you, Anish. Another quarter of strong brand and product reactions across the group. We continue to strengthen and augment our EV portfolio in India with the launch of the refresh Tiago and Sierra TV, which has helped to improve our market position over the last several quarters. At JLR, we will continue to see the step-up in launch activities towards the introduction of all EVs over the coming quarters. Next
Already have an account? Log in
Get the full story
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
7-Day Free Trial · Cancel Anytime
Subscription fee may be tax deductible.
Excellent 
4.6 out of 5 
Trustpilot
Trustpilot
Survey
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
Follow Us
Disclaimers