7:32 am, August 14, 2026
JLR’s pre-tax profit plunged by almost 69% in the first quarter, although the British carmaker did remain in the black.
The Coventry-based business made a profit before tax of £109m in the three months to June 30 of FY27, down from £351m in the same period last year. Profit after tax fell to £66m from £248m.
Revenue also fell 9.6% to £6bn, with wholesale vehicle volumes down 9.2% year-on-year.
JLR said volumes and profitability were hit by temporary supply constraints, including a fire at a major component supplier at the start of the quarter.
The business also blamed market disruption linked to the conflict in the Middle East and the planned wind-down of outgoing Jaguar models ahead of the launch of the new Type 01.
JLR’s adjusted EBIT margin fell from 4% to 2.8%.
The company said profitability was also affected by market conditions, with retail volume, mix and incentives rising from 4.1% to 7.1%.
Range Rover, Range Rover Sport and Defender accounted for 80.8% of wholesale volumes in the quarter, up from 77.2% a year earlier.
The results also showed continued pressure on JLR’s cash position, with free cash flow at negative £998m for the quarter.
The company ended June with £1.7bn in cash and total liquidity of £5.9bn, including undrawn credit facilities.
JLR is now preparing for a major product push, with four new models due to launch in the coming months.
These comprise the Range Rover Electric, Range Rover Sport Electric, Range Rover GT and Jaguar Type 01.
The company also says its recently announced efficiency programme will begin delivering £1.7bn of savings over two years, with further details expected alongside its second-quarter results.
JLR chief executive P.B. Balaji said the business continued to see strong demand for its brands despite the challenges.
‘JLR delivered first quarter profits of £109m and an adjusted EBIT margin of 2.8%,’ he said.
‘Despite the near-term industry challenges, we continue to see strong demand for our brands and look forward to the launch of four sensational new products in the coming months.’
JLR also confirmed that it plans to continue with £18bn of investment over five years from FY24 ahead of the new product launches.
The manufacturer is targeting double-digit revenue growth over the next five years and said it would achieve this through greater flexibility over powertrains and a greater focus on North America.
The company has also signed a memorandum of understanding with Stellantis to explore opportunities to collaborate on new Defender products specifically designed for the US market.