Tata Motors Passenger Vehicles reported a net loss of Rs 3,486 crore, compared with a loss of Rs 5,406 crore in Q3FY25 and Rs 76,170 crore in Q2FY26. The automotive major said in its Q3 release that performance continued to be significantly impacted by the cyber incident at Jaguar Land Rover (JLR) and other exceptional items such as the labour code and stamp duty.
Revenue from operations stood at Rs 69,605 crore, down 25% year-on-year (YoY) from Rs 93,823 crore in Q3FY25. Revenue declined 23.56% quarter-on-quarter (QoQ) from Rs 71,714 crore.
Tata Motors Passenger Vehicles houses the Tata Group’s Indian carmaking business and JLR, with significant production in Britain. In November, the company spun off its commercial vehicle business into a separately listed entity.
#1. Exceptional items drag Tata Motors into Q3 FY26 loss
The company incurred exceptional items of Rs 1,600 crore in Q3FY26, mainly comprising expenses related to the JLR cyber incident, the new labour code, and stamp duty, amounting to Rs 800 crore, Rs 400 crore, and Rs 400 crore, respectively, resulting in a PBT of Rs (4,700) crore.
JLR was forced to halt production for five weeks until early October following a cyberattack that cost it $228.5 million in the July–September period and prompted the British government to step in with a loan guarantee of 1.5 billion pounds ($2.04 billion) to help support the luxury carmaker’s supply chain.
JLR, Britain’s largest carmaker, accounts for up to 80% of its parent’s revenue, with the domestic business forming the remainder.
Domestic sales rise 22% as JLR volumes slump
During the quarter, Tata Motors’ domestic business posted a 22% rise in local sales and exports. JLR, on the other hand, reported a 43% decline in sales, excluding that of its Chinese joint venture, with normal production levels following the shutdown resuming only around mid-November.
JLR’s earnings before interest and taxes (EBIT) margin, a closely watched indicator of the company’s operational profitability, slid to negative 6.8%, from positive 9% the year before.
For the full year to March 2026, JLR has projected an EBIT margin of 0% to 2%, lowered twice in the previous year following U.S. tariffs on imported vehicles and the cyberattack.