British luxury car brand Jaguar Land Rover (JLR) has revised its FY26 guidance downward after a severe cyber-attack and subsequent production shutdown triggered significant losses across two quarters, even as the carmaker ramps up operations to normal levels. According to PB Balaji, Group CFO of Tata Motors, production has only recently begun returning to full capacity, but the lost weeks cannot be recovered within the year, resulting in a weaker-than-expected Q3 outlook.
“We are now starting to hit our full rate of production. But we will not be in a position to catch up on the lost production weeks in the rest of the year. And therefore, that’s the reason you’re finding that Q3 will be a weak quarter,” PB Balaji said. He added that in Q4, the company should get back to “full normalcy” in terms of numbers. “Hence, we have revised the guidance downwards, and that’s what we hope to improve upon as production stabilizes,” he added.
In June 2025, JLR had also revised its EBIT-margin guidance for FY26 to 5–7%, down from an earlier target of 10%. The adjustment reflected several headwinds, including rising US auto tariffs, increased capital investment (especially in EVs), and a product-transition phase that together squeezed short-term profitability.
“So, see, the impact of the cyber incident was in September. And we started ramping up production from the 8th of October onwards. And we are now back to full production in the last few weeks. So therefore, there’s an impact as much in October as well,” he added.
Balaji noted that the shutdown’s effect spilled across Q2 and Q3 because lost production weeks cannot be recovered within the financial year. “This impact is spread over two quarters in terms of production losses. And from here on, we do expect to see production ramp up. So right now, between now and the end of the year, the entire focus is to keep the production rates up,” he said.
For the September quarter, JLR reported revenue of £4.9 billion, down 24.3% year-on-year, as lost output, the planned phase-out of older Jaguar models, US tariff pressures, and higher marketing costs weighed on performance. EBIT margin slipped to –8.6%, compared with 5.1% in the same period last year.
The company posted a loss after tax of £559 million, reversing the £283 million profit it had recorded in Q2 FY25.
JLR now expects an FY26 EBIT margin of 0-2% and a free cash outflow of £2.2-£2.5 billion, though it remains committed to its £18 billion five-year investment programme.