Tata Motors Passenger Vehicles (TMPVL) reported a sharp decline in financial performance for the quarter ended December 31, 2025, as the cyber attack at Jaguar Land Rover (JLR) significantly disrupted production, volumes, and global vehicle deliveries.
Cyber Incident Drives Revenue and EBIT Decline
TMPVL posted consolidated revenue of ₹70.1K crore in Q3 FY26, down 25.8 percent year over year. EBIT fell sharply to a loss of ₹3.3K crore, declining by ₹11.0K crore compared with the previous year.
The company said the quarter continued to be significantly impacted by the cyber incident at JLR. While the domestic business improved sequentially due to higher volumes and incentives, the global luxury division dragged overall performance.
Profit before tax before exceptional items stood at a loss of ₹3.1K crore. After accounting for exceptional expenses of ₹1.6K crore, the reported PBT widened to a loss of ₹4.7K crore. Net loss for the quarter stood at ₹3.5K crore after recognizing a deferred tax asset at JLR.
Exceptional costs included:
- ₹0.8K crore linked to the JLR cyber incident
- ₹0.4K crore related to the new labor code
- ₹0.4K crore for stamp duty
Year to date FY26, TMPVL reported PBT before exceptional items of ₹4.6K crore loss, a deterioration of ₹23.1K crore compared with last year.
Free Cash Flow Turns Negative Amid JLR Disruption
Consolidated free cash flow turned negative at ₹17.9K crore in the quarter due to lower volumes and adverse working capital impact at JLR. Net debt as of December 31, 2025 stood at ₹39.4K crore.
The company expects performance to improve in Q4 as JLR volumes normalize and domestic demand remains strong.
JLR Revenue Falls 39 Percent After Production Shutdown
Jaguar Land Rover was the most impacted by the cyber attack, which forced a production shutdown and disrupted global vehicle distribution.
JLR reported:
- Quarterly revenue of £4.5 billion, down 39 percent year over year
- Year to date revenue of £16.0 billion, down 24 percent
- EBIT margin of negative 6.8 percent in Q3 versus positive 9.0 percent last year
- Loss before tax and exceptional items of £310 million in Q3 compared with £523 million profit last year
The company said wholesale volumes fell significantly because production returned to normal only by mid November, followed by delays in global vehicle distribution.
Profitability was further affected by:
- Wind down of legacy Jaguar models ahead of new launches
- Weak market conditions in China
- Incremental US tariffs and higher VME spending
Loss after tax for the quarter was £298 million, compared with a profit of £375 million in the same quarter last year. Year to date, JLR posted a loss of £609 million versus £1.2 billion profit a year earlier.
Exceptional items of £74 million in the quarter included £64 million related directly to the cyber incident.
Outlook: Recovery Expected in Q4
Tata Motors expects a sharp improvement in Q4 as JLR production and deliveries recover. The company plans to accelerate brand-led actions and cost savings initiatives to strengthen demand and cash flows.
JLR reaffirmed its FY26 guidance, targeting an EBIT margin of 0 percent to 2 percent and free cash outflow of £2.2 billion to £2.5 billion. Investment spending remains at £18 billion over five years as the company prepares to launch next-generation vehicles, including Range Rover Electric and a new Jaguar lineup.
Despite the cyber attack setback, Tata Motors said it remains focused on recovery, transformation, and long-term growth driven by new product launches and domestic market momentum.
RAJANI BABURAJAN
