TaMo PV posts net loss as JLR cyber incident drags Q3FY26 performance

Tata Motors Passenger Vehicles slipped into a loss in Q3FY26 due to costs linked to a JLR cyber attack and regulatory provisions, even as domestic retail demand stayed robust, led by SUVs

Tata Motors Passenger Vehicles (TMPV) posted a net loss of ₹3,483 crore for December quarter of 2025-26 (Q3FY26) from continuing operations, thanks to expenses pertaining to the Jaguar Land Rover (JLR) cyber attack incident, provisioning on account of labour Code and stamp duty changes (post demerger with commercial vehicle business). The company had posted a profit of ₹4,164 crore in the corresponding quarter last year. 

 

Revenues were down 26 per cent year-on-year (YoY) to ₹70,108 crore as the recent cyber incident around August-September cost the company around 50,000 units of production -- around 20,000 impacting Q2 and 30,000 impacting Q3. TMPV stock ended day’s trade down 0.3 per cent on BSE. 

 

However, TMPV domestic performance improved sequentially on account of higher volumes. Shailesh Chandra, managing director (MD) and chief executive officer (CEO) of TMPV said that retail performance was actually much stronger than wholesale in Q3. “Our wholesale volumes were around 150,000 units in Q3, while retail sales were approximately 210,000 units. Retail growth has been very strong, especially driven by compact and sub-compact SUVs such as Punch and Nexon,” he added.

 

“We are seeing extremely strong bookings coming in. I am quite confident that we will continue to post growth on a month-on-month basis. In January alone, we saw 46 per cent growth, and we expect to sustain this momentum,” he told reporters. With six-figure bookings for the new Sierra, and the recently launched Punch seeing traction, TMPV is actively working with suppliers to increase throughput. Sierra and Nexon are produced at the same facility, and both have seen strong demand, requiring careful balancing, Chandra said, adding that they have taken actions to increase supplier capacity as well as incremental capacity at the plant level.

 

TMPV’s loss before taxes and exceptional items for Q3FY26 stood at ₹3,100 crore -- the exceptional items of ₹1,600 crore for the quarter majorly comprised expenses pertaining to JLR cyber incident (₹800 crore), labour Code (₹400 crore), and stamp duty (₹400 crore). 

 

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. 

 

TMPV acknowledged that the overall global demand continues to remain challenging. 

 

JLR posted a loss of 298 mn pounds in Q3FY26 compared to a profit of 375 mn pounds in the corresponding quarter last year. 

 

Richard Molyneux, JLR CFO, said that JLR’s Q3 was impacted by the cyber incident and the time taken thereafter to distribute vehicles globally across our supply chain. Meanwhile, the increase in US tariffs and weakness in the China market impacted sales volumes in the two biggest car markets in the world.

 

“Ebit (earnings before interest and taxes) margin for Q3 was minus 6.8 per cent, and year-to-date minus 2.9 per cent. However, we have reaffirmed our Ebit margin guidance for the following year at between 0 per cent and 2 per cent positive,” he added.

 

Molyneux claimed that JLR plants are now back to normal production levels. So, despite a difficult period, the company expects their performance to improve significantly in the forthcoming quarter -- 2026 will see a reveal of JLR’s next-generation vehicles, including the launch of the Range Rover Electric, the unveiling of the new Jaguar, and the unveiling of the first vehicle on our EMA platform.

 

European markets under consideration: TMPV

 

Shailesh Chandra, TMPV MD & CEO, said the company will consider entering the European markets in future, with an initial focus on easier-to-serve geographies. Currently, Tata Motors is prioritising right-hand-drive markets, where its products are a natural fit and execution is already underway, including the recent entry into South Africa in the current financial year. Europe remains firmly on the radar, particularly for electric vehicles, irrespective of the India-EU free-trade agreement. However, the pace and scale of any European entry will depend on clarity around the final terms of the India-EU FTA. “Once the details are available, we will have a clearer understanding of the opportunity and whether we can accelerate or fast-track our entry into Europe,” Chandra said.