Tata Motors Passenger Vehicles and JLR Q2FY26 Earnings Results Out: Earnings Hit by Cyber Incident and Weak Margins

Tata Motors’ Passenger Vehicles (PV) business includes brands such as Tata passenger cars, electric vehicles, and Jaguar Land Rover (JLR). JLR remains the largest contributor to the overall business, accounting for more than two-thirds of total revenue.

JLR Cuts Full-Year Margin Outlook

Jaguar Land Rover sharply reduced its EBIT margin guidance for the full year to 0%–2%, down from 5%–7% earlier.

 The company also expects free cash outflow of £2.2–£2.5 billion, compared with earlier expectations of being close to zero. Investment spending is set to remain high at £18 billion over five years from FY24.

During Q2, JLR posted a loss before tax and exceptional items of £485 million, reflecting continued pressure on operations. Revenue fell 24.3% year-on-year to £24.9 billion.

 EBITDA margin stood at –1.6%, while EBIT margin fell sharply to –8.6%, down 1,370 basis points from last year.

Impact on Tata Motors’ PV Business

Adjusted for the one-time gain booked earlier, the Tata Motors PV division would have reported an adjusted loss of ₹6,370 crore, compared with a net profit of ₹3,056 crore in the same quarter last year.

This quarter also marks the first standalone financial reporting by the Passenger Vehicles business after its separation. JLR’s weak performance weighed heavily on the consolidated results.

Operational Performance and Cyber Incident

Tata Motors PV noted that operations were significantly impacted by the cyber incident at JLR, affecting production and sales.

EBITDA for the PV unit dropped sharply to ₹303 crore from ₹717 crore last year, bringing EBITDA margin down to 2.4%, compared with 6% in the year-ago period.

 However, revenue for the quarter rose 6% to ₹12,751 crore, supported by steady demand for passenger vehicles and electric models.

On a standalone basis (excluding JLR), the company reported an adjusted loss of ₹237 crore, compared with a profit of ₹15 crore last year.

TMPV Share Price Reaction

Ahead of the earnings announcement, shares of Tata Motors PV closed 1.7% lower at ₹391.2, slipping below the discovery price of ₹400 per share.

Read more: MakeMyTrip Teams Up with Emoha to Introduce Holiday Packages for Senior Citizens.

Conclusion

Tata Motors PV and Jaguar Land Rover faced a challenging quarter marked by operational disruptions, shrinking margins, and higher expected cash outflows. While the PV business delivered moderate revenue growth, profitability weakened sharply. JLR’s reduced outlook and ongoing recovery efforts remain critical for the company’s full-year performance.

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