Tata Motors Passenger Vehicles Reports Q3 Loss Amid JLR Cyberattack Fallout
Tata Motors Passenger Vehicles (TMPV) has reported a consolidated loss of Rs 3,483 crore for the third quarter of the fiscal year, a stark reversal from a profit of Rs 5,485 crore in the same period last year. This downturn is primarily attributed to a significant cyberattack at its UK-based luxury subsidiary, Jaguar Land Rover (JLR), which severely disrupted operations and led to a substantial one-time charge of Rs 1,600 crore.
Impact of Cyberattack on Jaguar Land Rover Operations
The cyberattack forced JLR to halt production for five weeks until early October, resulting in a direct loss of $228.5 million during the July-September period. In response to the crisis, the UK government intervened with a loan guarantee of $2.04 billion to support JLR's supply chain and stabilize operations. JLR, which contributes approximately 80% of TMPV's revenue, saw its revenue decline by about 34% to Rs 53,849 crore in Q3FY26.
Financial Performance and Revenue Breakdown
Overall, TMPV's revenue fell by nearly 26% to Rs 69,605 crore during the quarter. While JLR's performance deteriorated, with its earnings before interest and taxes (EBIT) margin dropping to negative 6.8% from a positive 9% a year earlier, the non-JLR segment showed resilience. Revenue from non-JLR operations, including Tata Motors' India passenger vehicle business, increased by 24% to Rs 15,317 crore, indicating some strength in domestic markets.
Management Outlook and Future Expectations
Despite the challenges, TMPV's management anticipates a significant improvement in JLR's performance in the fourth quarter of FY26. They remain optimistic about recovery efforts, even as external environmental factors continue to pose volatility. The company is focusing on mitigating the cyberattack's impacts and leveraging government support to restore normalcy in its luxury arm's operations.
