Tata Motors Q3: JLR cyber incident triggers ₹3,500-cr loss despite record domestic PV sales, GST 2.0 tailwinds

Tata Motors Passenger Vehicles Limited (TMPVL) delivered revenues of ₹70,100 crore, down 25.8%, and EBIT of ₹3,300 crore loss. The performance continued to be impacted significantly by the cyber incident at Jaguar Land Rover in September 2025.

The domestic performance improved QoQ on account of higher volumes and incentives. PBT (bei) for Q3 FY26 stood at ₹3,100 crore loss. Exceptional items of ₹1,600 crore for Q3 FY26 majorly comprised of expenses pertaining to JLR Cyber Incident, New Labor Code and Stamp duty, resulting in PBT of ₹4,700 crore loss.

Net Profit in Q3 FY26 was ₹3,500 crore loss post recognising a deferred tax asset at JLR. For YTD FY26, the company reported a PBT (bei) of ₹4,600 crore loss, a decline of ₹23,100 crore over the previous year. The consolidated free cash flow for the quarter was negative at ₹17,900 crore driven by lower volumes and adverse working capital impact at JLR. Net debt as on December 31, 2025 was ₹39,400 crore.

Looking Ahead: “The overall global demand continues to remain challenging. We will step up our brand-led actions at JLR to drive up demand for our products and execute enterprise missions programme aimed at enhancing savings and cash flows. Domestic business continues to witness robust demand, and we will accelerate growth through exciting launches and innovations. Overall, we expect a sharp improvement in Q4, led by normalization of JLR volumes,” the release stated.

Tata Motor Passenger Vehicles (TMPV) Q4 performance

Revenue for Q3 FY26 stood at ₹15,300 crore, marking a 24% year-on-year increase, while year-to-date FY26 revenue reached ₹39,700 crore, up 10.6%. EBITDA margin for the quarter came in at 7.0%, declining 80 basis points year-on-year, and EBIT margin stood at 1.2%, down 50 basis points. Profit before tax (before exceptional items) was ₹300 crore during the quarter. For the year-to-date period, EBITDA margin was 5.8%, down 80 basis points, while EBIT margin stood at negative 0.2%, declining 90 basis points, with profit before tax (before exceptional items) remaining at ₹300 crore.

The domestic passenger vehicle and EV business generated free cash flow of ₹300 crore during the quarter. The closing cash balance for the domestic business stood at ₹8,900 crore, with gross debt at ₹3,800 crore, resulting in a net cash position of ₹5,100 crore.

On the business front, the company’s Vahan market share rose to 13.8% in Q3 FY26, up 100 basis points quarter-on-quarter, helping it secure the second position for the quarter based on Vahan data. EV Vahan market share continued to expand, reaching 43.6%, supported by record registrations during the quarter. The alternative powertrain mix remained strong, with EV penetration at 14% and CNG penetration at 28%.

Passenger vehicle and EV volumes during the quarter stood at 171,000 units, reflecting a 22% year-on-year increase, driven by the reduction in GST rates and strong product performance. While revenue grew during the quarter, margins were impacted by weaker realisations, higher commodity costs, fixed costs, and depreciation, which offset the benefits of higher volumes and incentive accruals. However, on a sequential basis, EBITDA and EBIT margins improved by 120 basis points and 100 basis points, respectively.

Looking ahead: The company remains confident about the PV industry’s growth in light of positive demand momentum seen post GST 2.0. With our product launches & interventions commencing deliveries in Q4 and a strong slate of upcoming launches, Tata Motors PV is well poised to accelerate its growth trajectory in FY27.

Shailesh Chandra, Managing Director & CEO, Tata Motors Passenger Vehicles Limited said, “In Q3 FY26, we recorded our highest-ever quarterly wholesales at 1,71,000 units, while retail sales crossed the 2,00,000-mark for the first time, driven by strong demand tailwinds from GST 2.0 and a robust festive season. Improved market traction also propelled our revenues to a new quarterly peak, registering a 24% year-on-year growth. The quarter was also highlighted by major product launches, including the launch of the eagerly awaited Sierra, which has received an exceptional customer response, and the unveiling of the Harrier and Safari in petrol. Going forward, we expect to accelerate growth with a strong product pipeline, healthy inventory levels, and sustained demand across segments, while strengthening our margin trajectory.”

Jaguar Land Rover’s Q4 performance

JLR’s revenue for the quarter was £4.5 billion, down 39% versus Q3 FY25 and £16.0 billion on a YTD basis, down 24% YoY. “This was largely driven by reduction in wholesale volumes, which were impacted following the cyber incident, with production only returning to normal levels by mid-November and the time being required thereafter to distribute vehicles globally. Volumes and profitability were also both impacted year-on-year by the continued planned wind down of legacy Jaguar models ahead of the new Jaguar launch, and deterioration of market conditions in China,” the company reasoned.

Profitability was also impacted by the cyber incident, ongoing incremental US tariffs and increased VME. Loss before tax and exceptional items was £ 310 million for Q3 and £444 million YTD, down from a profit of £ 523 million and £1.6 billion respectively, a year ago.

EBIT margin was down 6.8% for the third quarter, from 9.0% a year ago, and fell -2.9% YTD, down from 7.8% last year. Exceptional items of £74 million in the quarter includes £64 million of costs related to the cyber incident. Loss after tax in the quarter was £298 million, compared to a profit of £375 million in the same quarter a year ago. YTD, the loss after tax was £ 609 million compared to a profit of £1.2 billion this time last year.

Looking ahead: “JLR remains resilient and well placed to address the economic, geopolitical and policy challenges the industry faces. Investment spend is expected to remain at £18bn over the five-year period from FY24. In light of the challenges faced, FY26 guidance is reaffirmed, with EBIT margin in the range of 0% to 2% and free cash outflow of £2.2 billion to £2.5 billion,” the company noted.