Shares of Tata Motors Passenger Vehicles Ltd (TMPVL) will be in focus heading into trade on February 6, after it reported a consolidated loss of ₹3,486 crore for the third quarter, compared with a profit of ₹5,406 crore in the year-ago period. Revenue from operations declined 26 per cent year-on-year (YoY) to ₹70,108 crore.
The company said both revenue and profit were significantly impacted by the cyber incident at Jaguar Land Rover (JLR), though it expects a strong recovery in the fourth quarter. TMPVL reported an EBIT loss of ₹3,300 crore during the quarter. Domestic operations improved sequentially, supported by higher volumes and incentives.
“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 QoQ. We expect performance to significantly improve in Q4 with recovery at JLR and continuing growth in domestic market share,” said Dhiman Gupta, CFO, TMPVL.
JLR reported revenue of £4.5 billion for the quarter, down 39 per cent compared with Q3FY25. The decline was primarily due to reduced wholesale volumes following the cyber incident. Production returned to normal levels only by mid-November, and additional time was required for global vehicle distribution.
Year-on-year volumes and profitability were also affected by the planned wind-down of legacy Jaguar models ahead of a new Jaguar launch and weaker market conditions in China. Profitability faced further pressure from the cyber incident, incremental US tariffs and higher VME. JLR reported a loss before tax and exceptional items of £310 million for Q3.
Looking ahead, JLR said it remains resilient despite economic, geopolitical and policy challenges. The company expects investment spending to remain at £18 billion over the five-year period from FY24. It reaffirmed FY26 guidance, with an EBIT margin in the range of 0 per cent to 2 per cent and a free cash outflow of £2.2-2.5 billion.
Excluding JLR, passenger vehicle and EV volumes stood at 171,000 units in the quarter, up 22 per cent YoY, driven by GST rate reductions and strong product performance. Revenue rose 24 per cent YoY to ₹15,300 crore. EBITDA margins came in at 7 per cent, down 80 basis points YoY, while EBIT margins were at 1.2 per cent, down 50 basis points YoY, as adverse realisations, commodities, fixed costs and depreciation and amortisation offset gains from volumes and incentives.
The company said global demand conditions remain challenging and that it will step up brand-led actions at JLR to support demand, alongside executing its enterprise missions programme to enhance savings and cash flows.
“Domestic business continues to witness robust demand, and we will accelerate growth through exciting launches and innovations. Overall, we expect a sharp improvement in Q4, led by normalization of JLR volumes,” Tata Motors PV said.
