Tata Motors PV slips into loss in Q3 as JLR cyber attack cripples margins

Tata Motors

• Tata Motors reported a Rs 3,483 crore loss in Q3 FY26, down from Rs 5,485 crore profit YoY.
• Revenue dropped 26% to Rs 69,605 crore due to JLR production issues.
• TMPVL's passenger and EV volumes up 22% YoY to 171,000 units in the quarter

Did our AI summary help?

Tata Motors Passenger Vehicles (TMPVL) recorded a loss of Rs 3,483 crore at the consolidated level for the quarter ended December 31, 2025 as against a profit of Rs 5485 crore recorded for the same quarter a year earlier.

Consolidated revenue from operations of the company comprising its own passenger vehicles division, Jaguar Land Rover (JLR) and the electric vehicle division, were down 26 percent to Rs 69,605 crore as against Rs 93,823 crore reported in the corresponding quarter of previous year.

JLR volumes were significantly impacted following the cyber incident in end August forcing the company to halt production. The time taken thereafter to distribute vehicles globally, following resumption of production to normal levels, only by mid-November.

Volumes also impacted by planned wind down of legacy Jaguar models ahead of new Jaguar launch, a deterioration of market conditions in China, and ongoing incremental US tariffs impacting JLR’s US exports, Tata Motors said in a release.

Dhiman Gupta, Chief Financial Officer, TMPVL said, “Overall, it was a challenging quarter as anticipated on account of carryover impact of cyber incident at JLR, while domestic business delivered robust revenue and margin improvement quarter on quarter. We expect performance to significantly improve in Q4 with recovery at JLR and continuing growth in domestic market share.”

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 pounds to 2.5 billion pounds, the company stated.

At the standalone level too TMPVL reported a loss at Rs 233 crore as against Rs 1471 crore reported in the same quarter previous year. The revenues from operations grew by 25 percent to Rs 15,163 crore as against Rs 12,112 crore posted in the same quarter previous year. EBITDA margins were at 7 percent, down 80 bps YoY.

Passenger vehicle and electric vehicle volumes during the reporting quarter were at 171,000 units, up 22 percent year on year driven by impact of reduction in GST rates and robust performance of products, the company added.

Shailesh Chandra, Managing Director & CEO, TMPVL said, “In Q3 FY26, we recorded our highest-ever quarterly wholesales at 171,000 units, while retail sales crossed the 200,000 mark for the first time, driven by strong demand tailwinds from GST 2.0 and a robust festive season.”

The December quarter saw major product launches from Tata Motors including the Sierra and the unveiling of the Harrier and Safari in petrol. Later it also launched the Punch in a new avatar.

“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,” Chandra added.