Q4 25/26

May 14, 2026

Summary

India PV delivered record FY26 volumes and a strong H2 rebound, while JLR recovered in Q4 but posted weak full-year results. FY27 priorities are scaling launches and supply, managing cost pressures, and delivering JLR’s GBP 1.7bn savings plan.

Good day, and welcome to Tata Motors Passenger Vehicles Limited Q4 FY 2026 earnings call. Today we have with us Mr. Shailesh Chandra, MD and CEO of Tata Motors Passenger Vehicles Limited; Mr. P.B. Balaji, CEO, JLR; Mr. Dhiman Gupta, CFO, Tata Motors Passenger Vehicles Limited; and Mr. Richard Molyneux, CFO, JLR. We also have the colleagues from the investor relations team. Today we plan to walk you through the results presentation followed by Q&A. As a reminder, all participants will be in listen-only mode, and we will be taking the questions via Teams platform. The same is already open to you to submit the questions. You are requested to mention your name and name of the organization while submitting the questions. I now hand over to Mr. Dhiman Gupta to take over. Over to you, sir. Thank you, Anish. Let's start with the key highlights for the year, FY 2026. A story of two halves for the India business. Started with muted volumes in H1, but a very strong comeback in H2 where you consistently ranked number 2 in Vahan market share on the back of demand for our popular brands and the new launches. On the way, Punch also emerged as the fastest growing SUV to reach 6 lakh cars on road in 4 years. Moving on to JLR. A difficult year indeed for JLR, but one which also demonstrated the continued resilience of its house of brands as it realizes, and it prepares itself for adding exciting new products in its portfolio over the next 12 to 18 months, starting with Jaguar BE. Consolidated financials. With the normalcy of production at JLR, all the consolidated financial metrics are looking up. Revenue comes in at INR 105,000 crores for the quarter. Up 7% year-on-year on the back of strong India growth story and the currency appreciation. PBT before exceptionals for the quarter was INR 7,200 crores, and FCF was INR 11,000 crores as we managed to unwind some of the working capital reversals that we saw in Q2 and Q3. For the full year, all the metrics remained down as it was impacted due to two lost quarters of production at JLR. PBT for the year was INR 2,500 crores, and this excludes about INR 4,100 crores of exceptionals for cyber, the labor impact in India, and the stamp duty charges for the demerger. Next slide, please. The board has approved a dividend of INR 3 per share. The cash outflow for the dividends will be about INR 1,100 crores. This will have to be approved in the ensuing shareholders meeting. Just to put the numbers in perspective, erstwhile Tata Motors paid INR 6 in dividends for the last 2 years. The TML CV has announced INR 4 of dividend in the results meeting yesterday. So this actually represents a total dividend of INR 7 in the year when the demerger was undertaken, and an increase over the INR 6 that we've paid for the last 2 years. The net debt for the year ending March 2026 was INR 30,000 crores, largely representing the INR 25,000 crores of consolidated cash burn and the INR 2,200 crores of dividends that we paid last year. PV remains cash positive at about INR 7,000 crores, while the net debt at JLR stood at INR 33,000 crores. Over to you, Richard. Thank you. Can you hear me okay? Yes, Richard. Go ahead, please. Perfect. Let's go to the next chart, please. As expected, we did recover strongly in Q4. We had 95,000 wholesales, revenue of nearly £7 billion, and EBIT of 9.2%. That's only a little lower than our bumper Q4 last year, and is actually the same EBIT level as we achieved two years ago. FX revaluation did hold PBT back a little bit further, but we returned to being significantly cash positive, generating £829 million in the quarter. This performance allowed us to achieve our external guidance for the year. We ended up with 0.7% EBIT within our 0%-2% guidance, and we ended up at the better end of our cash guidance, with full year cash loss just over £2.2 billion versus a -£2.2 billion to -£2.5 billion range. Having said that, and delivered what we promised in Q4, it is accepted that our full year financial performance is far from what we had intended when we started the year. Corrective action is necessary. Next page. I won't go through this as per usual. It contains all the points I'll cover off in the presentation. They are just in a summary form in case you want to refer to it. Next page. You can see wholesale volumes here by brand. Defender in particular continues to defy industry norms and go from strength to strength through its life cycle. Up quarter-on-quarter and year-over-year in Q4. Although Range Rover was down versus Q4 last year, almost all of this was accounted for by Evoque and Velar, with Core Range Rover and Range Rover Sport fairly flat year-over-year. The biggest change, and one fully planned for, was Jaguar, down 5,700 units versus Q4 last year, as we progress towards the new brand and the new product. On a full year basis, on the bottom row, we achieved 308,000 wholesales with again, Defender, Range Rover, and Range Rover Sport showing the strongest performance. Next chart. Here's the same data by region. Well, actually, the more interesting data is the full-year data in the bottom row of the chart. The biggest change was the U.S., where tariffs made some derivatives and channels non-viable. But we also significantly reduced our retailer stock levels in the U.S., and those are the ones that we had deliberately brought up at the end of last year prior to the tariff introduction. So there's a bit of a pre-tariff, post-tariff correction there. China is down 27% year-over-year, versus FY 2025, reflecting the impact of the new luxury taxes that were issued in July and also general market downturn requiring us to also reduce dealer stock levels to protect sales quality. In other regions, sales were consistently plus or minus 15% down from our very bumper FY 2025. Next chart. This turns back to the financials and shows the walk from PBT in Q4 last year, which was GBP 875 million, to this year's GBP 458 million. Volume of mix was GBP 44 million negative, and this is much lower than you would naturally expect from losing 16,000 units. But the mix offset was really strong. Range Rover, Range Rover Sport, and Defender were 77% of our sales in the quarter, versus 66% last year. Tariffs and duties were negative GBP 114 million, but offsetting the quarter by the removal of reserves from federal CAFE regulations in the states that were triggered in the quarter. On a full year basis, our incremental tariff costs were around GBP 525 million, with over half of this being offset by lower U.S. emissions impacts. The next column, VME, it does continue to rise. It is at 7% versus 5% last year. And although we made savings in material costs, our warranty costs remained stubborn despite the focus that we have in this area. The other main change was in FX in the right-hand side, where sterling continues to strengthen versus the dollar, which hurts us. The average rate in the quarter was 136 versus 125 last year. And this leads to the operational variance of minus GBP 265 million, of which about half was offset through our hedging names. The revaluation of bonds and other liabilities was negative, as there was a spike down in sterling right at our year-end to close at 132. So that explains the walk down through to PBT. The next chart looks at the cash flow walk, but on a full year basis. Cash profit after tax of GBP 1.9 billion was impacted by tariffs, cyber, et cetera. And at that level, it was only half of what we achieved last year and insufficient to fund our in-year investment needs. This was exacerbated by adverse working capital, as you can see on the right-hand side, as lower volumes drove lower payables. Next page. A little more detail about investment on this page. On a full year basis, we spent GBP 3.57 billion, of which GBP 2.6 billion was engineering, as we progressed three new architectures towards their launches. Investment was largely in facilities for those vehicles in our U.K. plants and also for the new BEV powertrains at our propulsion facility in Wolverhampton. Engineering capitalization rates was marginally lower than FY 2025 at 64%. Next chart. Right. From the numbers to a little bit more qualitative business update, I will start this, as you might expect, with the Middle East crisis. There are several impacts from this conflict. On the demand side, sales in the Middle East, which represent 6% of our total sales mix, they will be hit in Q1. Do note that given our wholesale recognition points for sales in this region, there was very negligible impact of the war in our Q4 results. We do expect this demand impact to be temporary. We see no lack of underlying demand or interest in our brands or products in region. On the supply side, input price increases are certain to happen, either directly through utility costs or freight rates or via the many components that are sensitive to petrochemical prices. As of yet, however, we have not seen any component shortages resulting from the conflict, and that was one of the fears expressed earlier in the year. On the expectation that there will be some form of resolution to the conflict, most of the effects that I have spoken about should prove to be largely temporary. However, many of the other pressures in our industry are more enduring and structural, and these are on the next chart. The splintering and volatility of geopolitics creates challenges from increasing protectionism, differing electrification appetites, and technology concerns that, for example, mean we have to duplicate large parts of our ADAS developments. This adds a very painful cost burden directly to the P&L and cash flow. Inflationary pressures I have mentioned, but even before the Middle East conflict, they were visible in commodity prices with aluminum and copper, for example, being much higher than last year. Supply chains that have taken many years to establish are getting challenged by rules of origin requirements, potential made in Europe rules, and shipping lane power struggles. Finally, it is not just the growing nature of the regulatory framework, but particularly its volatility that hurts long lead time capital-intensive sectors such as ours. Note, however, that almost everything I have mentioned on this chart is related to the supply side of our business equation. If you look at the demand side, please split to the next chart. On the demand side, the situation is more stable for us. You can see the summary here. Demand for Range Rover, Range Rover Sport, and especially Defender remains very strong. The latter boosted by Rally with Defender Trophy, hard top derivatives, and of course, the Oasis Tour Higher. Regionally, North America is holding up well. It is a growth potential market for us. The U.K. and Europe are doing okay, and China, after a very challenging year, seems at least to be stabilizing. Given this new world order in supply and demand side of our business, what is our response? Next chart. The first part of our response is with an intensive launch of products that embody and embolden our brands. Range Rover Electric, Range Rover Sport Electric will be the first into production, followed by the reveal of the production version of the new Jaguar Type 01. Quickly after that, the launch of the first EMA car, a Range Rover. I've driven all of these cars, and both the design and the engineering are staggeringly good. We know that we need to change internally to be fit for the new world order. This is what we're doing through our missions on the next chart. We've consolidated these to five. Launch excellence to drive the success of the products I've just described. Three, focus on our cost base to build back margins, and then the foundational work on our processes, data, and systems to enable speed and efficiency. Together, we're targeting GBP 1.7 billion of savings over two years to bring our break-even volume back down towards 300,000 units a year. What does this mean for FY 2027? Next chart. Our priorities are to grow our top line through our brands whilst resetting our break-even volume and delivering multiple launches flawlessly. We'll give financial guidance at Investor Day in June. A great reason to join us here in Gaydon. That's going to be on the 17th of June. Don't miss out. On that note, I'd like to conclude and hand you back to the team. Thanks for your time. Thank you, Richard. Anish, next, please. The story of two halves that we mentioned at the start of the call, playing out in these charts. A tough H1 for us and a very strong rebound in H2 with ES2 and the new launches. Exiting the year with a more than 14% market share and consistently being ranked number 2 in volume. The CNG and EV penetration continues to improve, and it's now greater than 40% of our portfolio, and the favorable powertrain mix reflecting, ending well below the CAFE norms. Next slide, please. A similar story for EVs. A strong recovery from Q1 onwards with the proactive steps that we have been taking towards mainstreaming of EVs and ending the year with a market share of over 40% and delivering a 43% wholesale growth for FY 2026. Next slide, please. The favorable industry demand, the mix, and the new launches helped drive two record quarters for us, delivering the uptick volumes of 170,000 in Q3 and over 2 lakh in Q4 FY 2026. This resulted in a 50% top-line growth year-on-year, and driving sequential improvement in profits from Q1 to Q4. We ended the year with a 9.4% EBITDA margin for the quarter and 4.7% EBIT margin. The PBT, before extraordinary expenses, in Q4 stood at INR 1,100 crore. For the full year FY 2026, while the top line grew at 15%, the EBITDA margins and the EBIT margins remain muted, given the adverse pricing impact we saw for the first nine months of the year, along with the steep commodity increases that we've been taking in through the year. Next slide, please. A very strong PBT improvement year-on-year, largely coming from fixed cost leverage, the INR 750 crore improvement on the back of higher volumes. You will see that the variable cost, which is normally a positive for us, is a lot muted because the 2% cost reductions that we have done has completely gone to absorb the commodity increases that we have seen. Last year, we did not take any price increases. The year-on-year PLI benefit for the quarter was almost INR 300 crore. The PLI accruals for FY26 crossed INR 1,000 crore. Next slide, please. FCF for the quarter came in at about INR 1,700 crore, both from strong operating profits, favorable working capital, and we also had about INR 500 crore benefit of tax refunds that came in this quarter. FCF for the India business for the year stood at about INR 1,900 crore. Next slide, please. Capex for the year stood at about INR 4,300 crore. That translated to about 7.5% of revenues, well within the guidance range that we gave from the combined Capex for PV and AE. Over to you, Sanjeev. Thank you, Vimal. Quick business update. We delivered the record volumes and attained number 2 position in H2, which was supported by GST 2.0. Let me first start with what happened in the industry first. After a muted first half, which saw flat volumes and subdued consumer sentiments, the PV industry witnessed a rebound in H2, with 17% growth year-on-year, propelled by GST 2.0, a favorable monsoon and policy tailwinds like repo rate cuts and income tax relief. For the full year, the PV industry touched a new high of 4.7 million units, which was 8% year-on-year growth. Post GST 2.0, growth has been sharper for compact SUVs and mid SUV segments, where our portfolio is well anchored. At the same time, there has been growing preference for greener powertrains, with CNG and EV segments growing by over 20% and 80% year-on-year respectively. In particular, the EV sales have seen a step jump this year with over 2 lakh units sold, which has been driven by greater participation of OEMs and more positivity among customers. In April and May, demand momentum for the industry has sustained at a very high level, which bodes well for the coming months and quarters. That said, all OEMs will need to closely monitor the impact of ongoing geopolitical developments and take respective actions to mitigate the adverse business impact, if it may come. Talking about TMPV performance, this is FY26. It has been a defining year for Tata Motors PV. We closed the year at a record 6.42 lakh units, delivering over 15% growth year-on-year. Nearly twice the pace of the broader industry, which grew at 8%. The exit momentum has been equally encouraging. Q4 saw record volumes exceeding 2 lakh units for the first time, with 37% growth year-on-year. We have really seen a step jump in our volumes in H2 during this period. We consolidated our position as the number 2 player in the domestic market, basis Vahan data, with a market share crossing 14%. Our products continue to see very strong demand across the board. In particular, Nexon and Punch held number 1 and number 3 spots respectively among all models in the industry during H2 FY26, reflecting deep and sustained customer preference for these two models. This was a year of intense launch actions for us, which have really strengthened our product portfolio. Launch of the much awaited Sierra marked the highly successful comeback for the iconic product this year. At the same time, the launches of new Punch and petrol versions of Harrier and Safari has strengthened our SUV portfolio. On the back of product interventions in Tiago and Altroz in 2025, we were also able to drive industry-leading growth in hatches. On the EV side, the introduction of Harrier EV and enhanced Punch EV has strengthened our portfolio and offered a better value proposition to customers. As most of these launches were in the latter part of the year, we will benefit from the full year impact of these launches in FY27. Coming to EVs, we recorded our best ever performance with 92,000 units sold, 43% year-on-year growth. We sustained our market leadership in EVs with over 40% share, despite a significantly more competitive landscape, with both established players and new players entering the fray. This outcome is a result of key launches this year, as well as our deliberate efforts to lower adoption barriers for EVs through product offering higher range, price parity with ICE, faster charging and lifetime warranty, which was complemented by ecosystem initiatives like TATA.ev mega charging hubs. CNG has also been a core driver of our growth in volumes. Our CNG volumes are now 27% of our portfolio in the past year, and our growth in CNG outpaces the industry as we sold over 1.7 lakh CNG vehicles. You can change the slide. Looking ahead, for the industry, we see a constructive demand environment ahead, which is reflecting in the first 2 months of the financial year. That said, we will have to closely monitor the West Asia situation with agility in our supply chain and mitigate adverse impacts. TMPV will look to deliver industry-leading growth in FY27, and for that, our growth levers are well in place. We have a healthy order book across models, lean channel inventory, and are seeing strong sustained traction across models, which will serve us well in the coming quarters. We will introduce new launches in a timely manner to strengthen our portfolio and enhance overall demand levels. To drive retail momentum, we will leverage impactful marketing initiatives and expand our network while ensuring that the network remains healthy. One major focus area for us will be to ramp up production for new launches and enhance capacities to serve the demand levels that we are seeing. We will also be mindful of the evolving geopolitical situation and will take proactive steps to build greater supply chain resilience. For the coming year, key levers for our profitability will be improving mix, operating leverage and cost reduction. Given the commodity cost headwinds that we are seeing currently due to the West Asia crisis, intense cost reduction actions will be crucial to offset some of the bottom line impact. In the coming years, CNG and EVs will continue to be growth drivers for the industry. Hence, we will capitalize on this trend with our strong CNG and EV portfolio along with key front-end actions to drive growth. To sum it up, FY 2026 has been a strong year for the business. The result reflects the cumulative impact of foundational actions that we have been taking over past 18 to 24 months, combined with agile and disciplined execution, especially in post GST 2.0 environment. As we enter FY 2027 with clear momentum and a well-defined roadmap to deliver industry-leading growth. With that, I hand over back to Dhiman. Thank you, Shailesh and Richard. In short, I think the priorities ahead for us are very well laid out. Demand in India is healthy, and the ramp-up in production and supply chain resilience will remain our foremost priority, along with mitigating actions for input cost increases that we are likely to see. EV mainstream actions involving extension of battery ranges and reducing the operation cost of vehicles are being executed at full speed, and we shall see further actions through the year. JLR is entering a crucial period, which will see it add exciting new products to its house of brands and needs to be executed flawlessly. Enterprise cost out missions to deliver the $1.7 billion savings is going to be a top priority so that we can take cash break-even volumes down to 300,000 again. Next slide, please. Just to handle, before we get into the Q&A session, just wanted to remind you that we will have our annual analyst sessions in June. It starts with Jaguar Land Rover on June 17, and we will conclude with the India session on June 23. So look forward to seeing you there. Thank you. Now to the published one. Yep. Shailesh, we will start with you. First set of questions from Binay Singh. Could you give us a sense of what is the kind of commodity headwind that you are seeing and you are likely to see, and how you are thinking of passing it on? Also, the second question is, how do we see our EV volumes step up from here? It has been growing, and is it expected to improve the net pricing? The third one is on the percentage of portfolio where we are getting PLI. Take that at the end. Okay. So, quickly on commodity headwind, we see a 9-12 month picture, including how we are seeing things this quarter. The impact has been somewhere between 5%-6% of revenue. Definitely upwards of 5%. Dhiman already mentioned previously that we have not been able to pass it on any price increase last year, because H1, there was a very low consumer sentiment and demand was under stress. Then in the second half, our government's effort of bringing down the GST rates, we could not take the price increase also to be aligned with the intention of what government had brought down the GST rates to. So definitely, we have not been able to pass on this to the market. There have been intense cost reduction effort, which has yielded us about 2% of revenue reduction. We also took about 0.5% increase in April. The cost reduction efforts, we are further intensifying. Having said that, there will be still residual stress of commodity impact that we are seeing. Therefore, we are actively considering some level of price increase in the coming month, but not decided as yet. So that's on commodity headwind. On EV volume run rate, yes, it has been consistently around 24,000. Or rather, in quarter four, we were at 27,000 roughly. We are consistently hitting a run rate of 9,000. Demand is extremely strong, especially after the Middle East crisis unfolded. Hopefully, we start ramping up further beyond 10,000 from this month onwards. So we are very optimistic about EV demand growing from here on. That's it. These are the questions, then you have to answer that percentage of- Shailesh, if you could also, I think you spoke about Sierra volumes. Sierra, okay. Yeah. So from the Sierra volume, as I said that we had received tremendous response to Sierra when we had launched the car. Since then, the demand and bookings have been consistently coming very strong. For us, the challenge has been on the supply side. Particularly, this has been because of one or two suppliers, especially on the casting side. It's a new engine, as you know. We have faced a ramp-up challenge. But we have taken series of corrective action, including additional suppliers to overcome, not only the constraint that we have said, but to ramp up the production of our engines. The immediate milestone for us would be to cross 10,000, then we have plans to further increase the production of Sierra in the coming months. Next quarter, we should also be launching the Sierra EV. That will further require additional capacity, but all of this has been planned. Thank you, Shailesh. Dhiman, your last question on PLI. Almost two-thirds of our volumes last year was accredited with PLI. That accounts for about INR 1,000 crore accruals that we took in last year. Moving on to the next question, Richard, this is coming your way. I think there are a lot of related questions on this one and the next one, so I will ask them one by one. One is, I know you are not giving any specific guidance to our Investor Day, but anything you could want to mention on the demand conditions you see in your key geographies? Yeah. I think I covered that off in my comments on the charts. I think North America as a region is still where, one, we have growth potential. Our brands resonate really well there. If you look globally at where the high net worth and ultra-high net worth individuals are, it is still in the States. So the States still has opportunity for us. I think the U.K. and Europe are stable. China, as everybody knows, has been through a very difficult period, but we have readjusted our retailer numbers and also our retailer stock level, and we see things, at least in the short term, stabilizing where they are. Obviously, the Middle East, I also covered off in our discussions, and the other overseas markets are reasonably stable as well. To be honest, the biggest issues that we are facing, again, I mentioned this, are more on the supply side as a result of the conflict in the Middle East and other issues. Demand for the moment is slightly a secondary concern. Okay. Any update on the Range Rover EV launch timelines and what kind of pre-bookings you are seeing? Yeah, it is coming very soon. It will be the first of our EV launches, and we have got three reveals coming during the second half of this year. We do not have pre-bookings. We have expressions of interest, and there are 78,000 of those at the last count. So that is where we stand. It is coming. I have driven it, and it is fab. Richard, I think another link question to this that is coming later. Any comments on with the expected fuel price increases we are seeing in Europe, are we seeing any shift in demand for EVs? Second is, does it have any implications on our investments or launch timelines for EVs? Yeah. So let me take that as well. I think we are seeing a couple of things. First of all, generally across the market, there has been an increase in internet search for EV vehicles over ICE vehicles as consumers are really focused on the prices that they can see at the pumps. It is affecting us a little bit less to an extent our consumer base, which is more in the high net worth individuals. They are less concerned than the average about the actual price at the pumps, but they do get concerned when there are issues around supply. So where things stand at the moment, I do not think that is having a direct and significant impact on our demand. I am sorry, there was a second part of your question as well, which I have forgotten. Does it have any implications on our launch timelines or on the investments on EVs as you have seen? Launch timelines, no. It in and of itself, the war in the Middle East, is not going to change our investment plans on the assumption that it is resolved in a reasonable timeframe. However, the geopolitical split between markets which are continuing to accelerate fast towards BEVs, those that are starting to accelerate fast in the other direction and those that are stuck in the middle, does mean that we will have to rebalance our investments over time to ensure that we have ICE offerings globally for longer. We are in the middle of doing that. Nothing specific to announce today, but obviously, like many manufacturers, we are going to need to ensure that we can offer both ICE, PHEV, MHEV and BEV offerings in parallel for longer than we originally thought we would need to. Thank you. Next question, Richard. How are we seeing the Chinese OEM competition increasing in Europe and U.K., and what does it mean for JLR and its house of brands? They're definitely coming. The best plan that we have in relation to the Chinese imports is to rely on our brands, essentially to fight them where they're not. We have vehicles that superbly embody the brands, and the brands are very strong. We expect to be able to use that to operate in a space where we have at least a level of protection versus these imports. Obviously, there are also geopolitical issues as to tariff structures made in Europe and various other things that are going to play into this. But at the moment, and it is working, we will use our strengths. The strengths are our brands and products that superbly embody them. Thanks, Richard. Shailesh, moving on to the next question. This is from Kapil. India EVs, can you talk about the demand environment and how long-term are you thinking of EV profitability versus ICE? Okay. So demand for EVs has significantly grown since the mid prices started. If I have to just attribute what was the percentage of growth in the bookings, which has started flowing versus pre the mid prices, which started in February, I think the jump is nearly 25%-30%. Our booking jump is much stronger also because of the new launches that we have done. Okay, so extremely strong demand. Issue is supply. It will completely depend on ramping up, how fast we are able to ramp up the volumes. As I already mentioned that from this month onward, we are already trying to increase the production by additional 10%, and we are also ramping up beyond that. It is all about alignment with the suppliers. The second question was more in terms of long-term profitability of EVs. Already it's quite strong, but it is also supported with PLI. I would say that long-term, if you see the trajectory of cost as far as ICE vehicles are concerned is inflationary because of the impending emission regulations, technology that you'll have to embed in the ICE vehicle to meet continuously stringent emission norms in the future is going to make it inflationary. Whereas, the trend of cost is significantly deflationary in EVs, and that will continue. Therefore, strong cost reduction programs. Even in the last three, four years, there has been significant cost reduction, much, much higher than ICE. Therefore, the combination of these two trends will not only give a possibility for EVs to be completely at price parity, but also from a profitability perspective, it will keep growing stronger. Thank you. Balaji, next two questions for you. One is the partnership with Freelander, with CJLR, are we planning to take Freelander globally? The second question is, what will be the revenue streams from JLR from Freelander? Yeah, thanks, Shailesh. Freelander is our JLR brand, and it has been licensed to Chery for manufacturing their cars. It will be manufactured in the CJLR factory, which is co-owned by Chery and JLR. Therefore, the products that we've been making in CJLR have run their course, and this factory would have otherwise idled. Now we have a very extremely interesting proposition of resurrecting our brand, Freelander, which has been there with us for a long time, and rebuilding it while using the Chinese technology. The Chery car, other than the design aspect which we are involved in, thereafter it's a Chery car, and it is going to be first sold in China. Then they'll have to make up their mind where they want to go thereafter. For our revenue stream, the main one is royalty for the brand that we have given to them. The brand is still owned by JLR, and that's the reason why we are involved in the design of it. As far as our other piece that will come through is that CJLR utilization and the total conversion will be the second revenue stream after 50% of that does come through. Those are the two fundamental ones. Thank you, Balaji. Richard, I'll hand over the next question to you. This is from Binay Singh again, Morgan Stanley. JLR ASPs trended down quarter-over-quarter while the share of RR and Defender went up. If you could talk us through this. Also, the gross margins went down quarter-over-quarter. Some color on inventory levels of JLR across the geographies amidst all the geopolitical issues we have seen on freight. Yeah, sure. ASPs were down marginally quarter-over-quarter. In sterling terms, I think it was about GBP 76,000 to about GBP 72,000. Biggest individual elements in there are sterling, which got stronger against the dollar quarter-over-quarter. In Q4 it was about 136, I think, and in Q3, much closer to 132.5. That's one impact. Obviously, then there was some regional mix issues as well. Range Rover, Range Rover Sport and Defender being stronger was the offsetting effect. Gross margins went down quarter-over-quarter. That is a little bit to do with higher VME levels. Also some charges that we had to take within the warranty space. Those are the two biggest impact there. Inventory is quite tight. Partly as a result of the lost production that we had through the cyber incident, we took retailer stocks down, particularly in the U.S. I mentioned this in my talk earlier on. We started the year with stock levels in the U.S. that were a little bit too high, but deliberately because we had anticipated that tariffs would come in and we wanted to get the vehicles in market beforehand. At the end of this year, they are back probably even a tiny bit below where we would normally want them to be. We are not with excessive inventory across any region. The U.S. is not overstocked. Obviously, MENA, at the moment, we have some dealers that are actively running out of vehicles as it is more difficult to get them vehicles into their importer ships. JLR inventory is in a better place at the end of FY 2026 than it was at the end of FY 2025. Richard, just to add to that, philosophically, being a luxury OEM, we would want to keep our inventory tight, and we should expect that to continue going forward as well. Yeah. Okay, Richard. Shailesh, if you could take the next two questions. One is follow-on to JLR. What is the kind of inventory levels we are seeing in India? Second, given the demand of some of the models, what is the kind of waiting period we are seeing? Yeah. So quickly on dealer inventory, we are right now at about 20 days level. Waiting periods for us would be ranging from 4-8 weeks. In general, I am saying. For certain models, of course, like Sierra and all, it is quite high. So is for certain EVs. In terms of the growth is the other question that you had asked. Yeah. The growth, from an industry perspective, we see industry will grow very strong and I am pegging the number around 10% because the first half of last financial year was over low base and therefore in H1, you are going to see very strong double-digit growth coming on the back of that because let us say first 1.5 months of this financial year, the demand remains very strong, carrying forward the momentum of GST. That will continue with some level of plus, minus 1% or 2%, depending on how the fuel prices play out in the coming months and how, to what extent the commodity prices are passed on to the market. But I do not foresee too much of an impact given that there was a 13% drop in GST which was done. So significant headroom in terms of what can impact the consumer sentiment. Therefore, I would still bet that industry will grow somewhere around 10%, especially it will be high double-digit growth in H1, and then it will moderate in the H2 with the high base. As far as Tata Motors is concerned, I think this year is going to be more a supply challenge for us rather than demand. Demand is significantly high for us. Therefore, the effort is to ramp up, enhance capacities both at our end as well as supply's end. We will have a phenomenal industry-leading growth because this year, we mentioned that last year we have launched in H2, three, four models which I talked about. But this year also, it is going to be an intense product action year for us. At least two new nameplates and four facelifts that we are going to launch. All four facelifts each for ICE and EVs, so it is an intense product action year. So we are really focused on the supply side. Thanks, Shailesh. I will come back to you for the next question, too. I think you mentioned about commodity headwinds. If you could clarify whether the 5%-7% increase in commodity prices are already in our P&L in Q4 or is it yet to come? How should we look at the commodity headwinds going? Yeah. I am just giving you a ballpark number of 5%-6%. I would say 2%-2.5% would have come last year and significant increase in this quarter, which is expected beyond that. If you can imagine 3.5%-4% increase, which we are expecting this quarter. Yeah. Nishant, just on the last part, the commodities are probably going to be elevated, and also volatile. Like I said, it is part of our priorities, cost mitigating actions need to be planned. We had not taken any price increase last year. The entire 2% input cost increase we had absorbed through cost reductions. We had announced a 0.5% price increase in April. Obviously we will keep monitoring the situation, and see if we can keep taking any measured price increases depending on how the market evolves. Second is, our volumes have gone up by 50% and there has been a massive effort in scaling up productions and our supply chain. As the volumes normalize, we will be able to optimize and further benefit from fixed cost leverage. Third is, our cost reduction programs are very robust. Not able to see the benefit last year because of the commodity increases that offset. Given the robust volume increases that we are seeing, we should be able to be in a good position to drive it up further. Yes, how to offset this would be top of our agenda next year. I just want to add, given that, just to be careful in terms of how we are going to approach this whole situation as all the cost reduction levers team had talked about, including mix improvement. What we will pass on to the market will be which does not disturb too much of value creation for the customer. Whatever we must, to also protect the margin, we will do that, but it will be a very careful balance between the two. Thank you, Shailesh. Next question, Balaji, you or me. Production of breakeven to 3,000. We have been constantly 300K. Sorry. 300,000. We have been constantly reducing the breakeven points for the last few years. How do we plan to do this? In some way, does it reflect our volume of 2,000? We probably didn't get 3,000 units on break even, but that's for another day. But having said that, getting this back to 300K, if you recollect that we did bring this business to breakevens of 300K to 320K not so long back. But since then there have been multiple moving parts. One, of course, is tariffs coming in, things have changed. The mix is starting to do very well for us. But of course, as we go forward, we need to ensure that with EVs coming in, we should be able to keep the mix. Then, of course, is with the currencies moving the way they have, that has obviously meant that you also had your main cost are in pounds sterling that played. And lastly, of course, as commodity inflation, everything kicks in, you will have a stress on that particular part of it. So therefore, this is a number just like similar for Tata Motors, you are looking at costs everywhere. We will obviously have to do it from our end as well. We are fundamentally looking at three areas that we are going after for the GBP 1.7 billion. First is the entire end-to-end delivered costs all the way from raw materials. If you look at our organization changes that we have put in place, we have stood up procurement as a separate vertical reporting into the board. So that's a clear move to signal the importance of strategic procurement because in the recent past, it has also meant that, because of the challenges on supply chain we have been having consistently, it's fair to say that we won't have the time and effort actually to focus on the strategic side of it. So that's one area we are looking at. And of course, as new products start launching, we should be in a better position to manage the entire end-to-end supply chain. That is number one. Second, an area which is not delivered for us is the whole warranty space. We've been talking about it for a while. While my IPKs are improving, quality is improving, products are actually performing to what they are expected to, cost to repair has shot through the roof, particularly in markets like the U.S. and other OEMs are also having the same challenge. So we need to up our game on that front. That's the second area. And of course, the amount of investment that we've done on IR, digital, et cetera, it's an area which needs to deliver productivity for us. Cyber has shown that there are areas we could still do work in terms of simplifying our IR landscape, et cetera. So that's the reason we put a CIO on the board as well. So there is enough and more opportunities to look for on this. That's the reason we have quantified it in a two-year period to deliver GBP 1.7 billion. So we should start working on that and the number should start reflecting from the second half of this year itself. So that's the whole plan. Thank you, Balaji. Richard, last question for the day. Talk about VME. How are we looking at VME going into FY 2027? I think generally it is relatively stable. I think it remains to be seen in China how the industry absorbs the extra 10% luxury tax that was implemented in the middle of last year. We are not seeing it rise considerably from the levels that we saw at the back end of the last financial year. Thank you, Richard. I am just waiting for one more question that has come. I will just take that. Raghu, is there a decline in other expenses on JLR? Richard, if you could take this and I will take the last one. Is there a decline in other expenses for JLR year-on-year and quarter-on-quarter? Yes, there is. You will find that the majority of that is actually exchange related in terms of a reasonably good hedge gain this year versus the opposite effect last year. It is largely that. There is some central cost reductions in terms of very centralized expenses, but the biggest element within there is exchange. Thank you. Shailesh, if you could talk about exports and what is the outlook for FY 2027? Last year we had a four times jump in exports to 10,000 plus units. This year also we are targeting anywhere between 70%-100% kind of a growth. Depending on how we are able to ramp up our production and then hope to further add to our portfolio in South African market. That timing will be important, so it can be anywhere between 70%-100% growth. Thank you, Shailesh. The last question for the day, Raghu, the question is, INR 471 crore PLI that we accrued in Q4 FY 2026, was there any prior period item? Answer is yes. We had about INR 90 crores pertaining to Q3 for which the product got certified in Q4, so we claimed benefits. So without that the number would have been about INR 380 crores. Thank you. Thank you everyone for joining our results call for Q4 FY 2026. Just to remind you all, our Investor Days are in June, 17th June for JLR and 23rd in India, and we look forward to seeing you there. For any assistance that you might need, please do reach out to our IR. Thank you, and have a great evening.