Tata Motors Passenger Vehicles (TMPV) on Friday posted a massive 2110% rise in its consolidated profit at Rs 76,248 crore in the July-September quarter. The surge was driven by a one-time exceptional gain of Rs 82,616 crore arising from the de-merger of the commercial vehicles business. Adjusting for this one-time gain, it was a weak weak operating quarter for the company, as it slipped into a net loss of Rs 6,368 crore. This was largely due to Jaguar Land Rover operations and declining group revenues.
Revenue from operations dropped to Rs 71,714 crore from Rs 82,841 crore in the year-ago period. At the operating level, the company reported an Ebitda loss of Rs 1,404 crore, a sharp reversal from the Rs 9,914 crore Ebitda profit posted in Q2FY25.
The biggest impact came from JLR. A cyberattack forced production to a halt for nearly six weeks, disrupting global factory operations at a critical point in the model cycle. Combined with the planned phase-out of legacy Jaguar models, wholesale volumes fell 25% to 66,200 units from 87,300 units a year earlier. JLR has now restarted operations globally, with production returning to normal levels from October 8, and the company maintains that it remains on track to achieve its full-year targets prior to the cyber incident. Still, the damage in the September quarter was significant. JLR swung to a loss after tax of £559 million and its full-year Ebit margin guidance has been cut to 0–2% from the earlier goal of up to 7%. The unit also estimated cyberattack costs at £196 million in the quarter and confronted added pressure from higher US tariffs and lower volumes.
Domestic operations provided much-needed cushioning. Passenger vehicle wholesales, including EVs, rose 10% year-on-year to 1,44,397 units, with domestic sales of 1,40,189 units and a sharp rebound in exports. Revenue from the domestic business grew 15.6% year-on-year to Rs 13,500 crore, supported by strong festive demand, GST-driven price advantages and the continued push in the SUV and EV portfolio.
The company expects momentum to strengthen over the coming quarters, supported by new product interventions including the upcoming Sierra and the petrol-powered Harrier and Safari. With JLR operations stabilising and the demerger now behind it, management says both the global and domestic businesses are positioned for a more stable trajectory despite external challenges.
“It has been a difficult period for the business. However, we are committed to emerging from the cyber incident even stronger. With the de-merger completed, both JLR and domestic PV businesses are well poised to leverage the significant opportunities provided by this exciting industry,” PB Balaji, group chief financial officer, said. Balaji is soon going to take over as JLR CEO.
On Friday, Tata Motors shares closed 1.3% lower at Rs 392.9 on the NSE. The results were announced after market hours.