Tata Motors PV Stock in Focus Following Rs 3,486 Crore Q3 Loss Linked to JLR Cyber Incident
Cyber incident at Jaguar Land Rover drags earnings into the red; company expects recovery in Q4 as production normalises and domestic demand stays strong.
Mumbai, Feb 06 : Shares of Tata Motors Passenger Vehicles Ltd (TMPVL) are likely to draw investor attention on February 6 after the company posted a consolidated loss of Rs 3,486 crore for the third quarter, sharply reversing from a profit of Rs 5,406 crore recorded a year earlier. Revenue from operations fell 26% year on year to Rs 70,108 crore.
The automaker attributed the weak performance primarily to the cyber incident at its British subsidiary, Jaguar Land Rover (JLR), which disrupted production and wholesale volumes during the quarter. TMPVL reported an EBIT loss of Rs 3,300 crore, reflecting the scale of the operational impact.
Chief Financial Officer Dhiman Gupta described the period as challenging but expressed optimism about the near-term outlook. He noted that while the cyberattack weighed on overall results, the domestic business delivered sequential improvements in revenue and margins. The company expects a significant rebound in the fourth quarter as JLR stabilises and local market share continues to expand.
JLR reported quarterly revenue of £4.5 billion, marking a steep 39% decline compared with the same period last year. Production only returned to normal by mid-November, and global distribution timelines further delayed recovery. The luxury carmaker posted a pre-tax loss, excluding exceptional items, of £310 million.
Performance was also affected by the planned phase-out of older Jaguar models ahead of a new launch, softer demand in China, incremental US tariffs, and higher variable marketing expenses.
Despite the setback, JLR reaffirmed its long-term strategy, maintaining planned investment of £18 billion over five years starting FY24. It also reiterated FY26 guidance, projecting an EBIT margin of 0%–2% and a free cash outflow between £2.2 billion and £2.5 billion.
Excluding the JLR business, Tata Motors’ passenger vehicle and electric vehicle segment showed strong momentum. Volumes climbed 22% year-on-year to 171,000 units, aided by GST rate reductions and solid product demand. Revenue rose 24% to Rs 15,300 crore.
However, profitability remained under pressure. EBITDA margin stood at 7%, down 80 basis points, while EBIT margin slipped 50 basis points to 1.2%, as higher commodity costs, fixed expenses, and depreciation offset volume-led gains.
The company cautioned that global demand conditions remain uncertain but said it will intensify brand-led initiatives at JLR to stimulate demand while advancing cost-saving measures to strengthen cash flows.
TMPVL added that the domestic market continues to demonstrate resilience, and upcoming launches and innovations are expected to support growth. With JLR volumes normalising, the automaker anticipates a sharp improvement in financial performance in the coming quarter.
