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TMPV logged mixed 1Q results, with consolidated revenue up 9% yoy amid 60% yoy growth in standalone (SA) operations and 10% decline at JLR. Consol EBITDAM fell by 400bps to 6.4%, owing to a margin decline at JLR (down by 590bps; higher staff costs/other expenses) and standalone operations (down by 320bps; fixed cost leverage/cost reduction benefits fully offset by a 4.5% impact on commodity prices). TMPV guided to a higher-double digit PV volume growth in FY27 (2H might see growth moderation on a higher base) led by a healthy orderbook, leaner channel inventory (30 days; volume to ramp up to 70k/mth due to festive build-up), and new product launches (1 more EV name plate + 2 refreshes). TMPV expects flattish 2Q margins despite another 3% impact on commodity price expected in 2Q (taken 1% cumulative price hikes during Apr-Jul ’26; frequent and progressive hikes to follow through FY27) on cost reduction, operating leverage, and better product mix. JLR retained its FY27 guidance (4% EBITM; FCF breakeven) and aims for 10% yoy revenue growth in the medium term (US to be a key market); it is focusing on improving product mix (ASPs to rise to £80k vs £74k now) and upcoming product launches (4 in FY27; 2 more in the pipeline). JLR’s ‘Enterprise Missions’ target £1.7bn savings over the next 2Y and reducing breakeven volume to 300kpa units. We cut FY27E/28E EPS by 5% to factor in the gradual margin recovery at JLR/SA operations; retain ADD and SoTP-based TP of Rs390 (roll forward to Jun-27E).

Healthy top-line print in India PVs offset by JLR; overall margins weak

Consolidated revenue was up ~9% yoy while consol EBITDAM fell by 410bps qoq to 6.4% amid higher staff costs/other expenses. JLR’s revenue fell 10% yoy (volume down 8.5% yoy; ASP down 1% yoy) and EBITDAM fell to 8.1%. JLR’s EBITM stood at 2.8% (vs 9.2% in 4Q). TMPV’s SA operations saw 60% revenue growth on 46% yoy volume growth. SA EBITDAM fell by 320bps qoq to 2.5%, on higher staff costs/other expenses

Earnings call KTAs

1) JLR: 1Q volume missed target by ~3k, partly on supply constraints and ME conflict; RR and RRS impacted by a fire at a chassis component supplier early in 1Q (now behind); 6 upcoming launches 4 imminent (RR EV, RRS EV, RR GT, Jaguar Type 01) and 2 in the pipeline; aims for 10% pa revenue growth (vs 13% guided earlier); ASP to improve to >£80k (vs ~£75k in 1Q); GM hit in 1Q was less severe as aluminium and precious metal prices came off their peak. Profitability was hit as market conditions pushed up VME yoy, partially offset by favorable structural cost and other one-offs. The situation in China is highly unlikely to ease (may worsen slightly before stabilizing); retail stocks reduced to avoid discounting.

2) India PVs: Demand environment is robust, with strong traction in new launches and product refreshes; volume on a strong trend, but growth likely to moderate in 2H on a higher base. TMPV targets higher double-digit growth in FY27. TMPV is undertaking several debottlenecking actions and capacity expansion initiatives (kicking in from Oct-26), particularly across some critical suppliers; 4.5% qoq commodity impact in 1Q with another 3% expected in 2Q; margin to be flattish in 2Q despite commodity price hit; 1% cumulative price hike across Apr-Jul; more frequent but progressive hikes to follow through to FY27. Inventory at 30 days; targets 70k/mth run-rate due to festive build-up; step-up in PLI expected in 2H; entire portfolio to be PLI-eligible from 3Q/4Q.

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