Tata Motors PV Reports ₹3,483 Crore Q3 Loss as JLR Cyber Impact Lingers

Tata Motors Passenger Vehicles Limited (TMPVL) posted a consolidated net loss of ₹3,483 crore for the quarter ended December 31, 2025, weighed down by the continued fallout from the cyber incident at its Jaguar Land Rover (JLR) subsidiary.

The company's consolidated revenue from operations stood at ₹70,108 crore in Q3 FY26, marking a sharp 3.1% decline from ₹72,349 crore in the previous quarter and a 25.8% drop from ₹94,472 crore in the year-ago period.

Total expenses for the quarter rose to ₹74,880 crore compared to ₹79,310 crore in Q2 FY26 and ₹89,698 crore in Q3 FY25, resulting in a loss before tax from continuing operations of ₹4,733 crore, compared to a loss of ₹8,070 crore in the previous quarter and a profit of ₹6,106 crore in Q3 FY25.

Exceptional Items Weigh on Bottom Line

The quarter saw exceptional items amounting to ₹1,597 crore, primarily comprising expenses related to the JLR cyber incident, new labor code provisions, and stamp duty charges. This resulted in a profit before tax (before exceptional items) of ₹(3,136) crore for Q3 FY26.

After accounting for tax expenses of ₹1,250 crore, the company reported a loss after tax of ₹3,483 crore from continuing operations, compared to a loss of ₹6,368 crore in Q2 FY26 and a profit of ₹4,164 crore in the corresponding quarter last year.

Nine-Month Performance Shows Recovery from Discontinued Operations

For the nine months ended December 31, 2025, TMPVL's consolidated revenue from operations stood at ₹230,135 crore, down 13.9% from ₹267,171 crore in the corresponding period of FY25. The company reported a profit before tax (before exceptional items) of ₹(4,648) crore for the nine-month period.

However, the company recorded a profit after tax of ₹76,767 crore for the nine-month period, primarily driven by an exceptional gain of ₹84,022 crore from discontinued operations, which included an ₹82,616 crore gain on disposal in Q2 FY26.

Cost Structure Analysis

Breaking down the expense structure for Q3 FY26:
- Cost of materials consumed: ₹49,826 crore (down from ₹50,550 crore in Q3 FY25)
- Purchase of products for sale: ₹4,389 crore
- Changes in inventories: ₹(10,392) crore
- Employee benefits expense: ₹11,381 crore (up from ₹10,484 crore YoY)
- Finance costs: ₹682 crore
- Depreciation and amortization: ₹4,969 crore
- Product development/engineering expenses: ₹3,240 crore
- Other expenses: ₹18,564 crore

JLR Cyber Incident Impact Persists

According to the company's management commentary, the performance continued to be significantly impacted by the cyber incident at JLR. Production at JLR returned to normal levels only by mid-November, with additional time required for global vehicle distribution. The domestic business, however, showed sequential improvement driven by higher volumes and favorable incentives.

The company has reaffirmed its expectation of sharp improvement in Q4 FY26, led by normalization of JLR volumes and continued growth in domestic market share. The domestic passenger vehicle business demonstrated resilience with robust demand, supported by recent product launches including the new Sierra, Harrier and Safari in petrol variants, and the updated Punch.

Cash Flow and Debt Position

The consolidated free cash flow for Q3 FY26 was negative at ₹(17,900) crore, impacted by lower volumes and adverse working capital movements at JLR. Net debt as of December 31, 2025 stood at ₹39,400 crore.

For the domestic business, the company maintained a net cash position of ₹5,100 crore with a closing cash balance of ₹8,900 crore against gross debt of ₹3,800 crore.

The company expects performance to improve significantly in the fourth quarter as JLR operations normalize and domestic business continues its growth trajectory backed by an enhanced product portfolio and sustained demand across segments.