Tata Motors is under intense market scrutiny as its subsidiary, Jaguar Land Rover (JLR), grapples with the financial fallout of a cyberattack. The estimated cost, surpassing £2 billion, has already disrupted production and is reportedly more than JLR’s entire profit in FY25.
The Financial Times has reported that JLR, owned by Tata Motors, may incur a bill exceeding £2 billion due to an ongoing cyberattack. The incident has halted production across key facilities, with weekly losses reported at approximately £50 million or $68 million, as per the BBC reports. This level of disruption implies that a large part of JLR's workforce of about 33,000 employees has been temporarily sent home while the problem is addressed.
To put the potential damage in perspective, JLR’s profit after tax for the entire financial year 2025 stood at £1.8 billion. Thus, the estimated cyberattack cost exceeds the annual profit figure, raising serious concerns about the impact on Tata Motors' consolidated financial performance, as JLR contributes 70% of the company’s topline.
Initially expected to resume by September 24, JLR extended its production pause until October 1 as the cyberattack crippled operations. According to BBC reports, the longer the shutdown continues, the greater the financial loss, compounding the already monumental £2 billion estimate. The situation was further intensified due to the lack of a finalised cyber insurance agreement, previously under negotiation by Lockton.
Read More: Tata Motors Share Price Rise as Festive Season Kicks Off with Strong Deliveries and Inquiries!
Shares of Tata Motors closed 2.6% lower at ₹682.95 on September 24, extending a recent downtrend. The stock has now fallen in 4 out of the last 5 trading days and has remained flat over the past month. Meanwhile, the company highlighted a strong retail performance, delivering over 10,000 vehicles on the first day of Navratri, with more than 25,000 enquiries, signalling robust demand during the festive season.
On September 25, 2025, Tata Motors share price opened at ₹669.90 on NSE, below the previous close of ₹682.95. During the day, it surged to ₹675.00 and dipped to ₹665.30. The stock is trading at ₹667.25 as of 9:52 AM. The stock registered a significant decline of 2.30%.
Over the past week, it has declined by 5.68%, over the past month, it has declined by 1.21%, and over the past 3 months, it has declined by 1.07%.
The cyberattack on Jaguar Land Rover presents a significant financial risk for Tata Motors, given its heavy reliance on the subsidiary. With losses mounting and the issue unresolved, investor sentiment may remain cautious in the near term despite positive cues from retail performance in India.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in securities are subject to market risks. Read all related documents carefully before investing.
Published on: Sep 25, 2025, 1:24 PM IST
Team Angel One
We're Live on WhatsApp! Join our channel for market insights & updates