Tata Motors Passenger Vehicles shares tumble 7% on weak JLR performance, cyber incident impact

Shares of Tata Motors Passenger Vehicles Ltd (TMPVL) fell sharply in Monday's trade after its luxury arm Jaguar Land Rover (JLR) reported a steep decline in quarterly financial performance. The stock dropped 7.27 per cent to a day low of Rs 363.15.

JLR posted a 24.3 per cent year-on-year (YoY) fall in revenue to £4.9 billion for the September quarter (Q2 FY26). The company said all major operating metrics were "significantly impacted" by the breach, which disrupted production and supply-chain activities. As a result, EBIT margins slipped to (–)8.6 per cent, a decline of 1,370 basis points (bps) YoY. The impact of the cyber incident also prompted JLR to slash its FY26 EBIT margin guidance to 0–2 per cent, from the earlier outlook of 5–7 per cent.

TMPVL said the disruption at JLR weighed heavily on its overall performance during the quarter. "The performance was impacted significantly by the cyber incident at JLR. Domestic performance was steady during the quarter but rebounded post GST reductions," the company said.

TMPVL's consolidated revenue declined 14 per cent to Rs 72,349 crore compared with Rs 83,656 crore in the same quarter last year. However, consolidated net profit surged to Rs 76,170 crore, supported by a one-time gain arising from the demerger of its commercial vehicles (CV) unit. In the year-ago period, the company had posted a net profit of Rs 3,446 crore.

PB Balaji, Group Chief Financial Officer, acknowledged the challenges faced during the quarter but expressed confidence in the company's recovery plans. "It has been a difficult period for the business. However, we are committed to emerging from the cyber incident even stronger. With the demerger completed, both JLR and domestic PV businesses are well poised to leverage the significant opportunities provided by this exciting industry," he said. Balaji added that while global demand remained soft, the domestic market showed early signs of improvement.

Looking ahead, TMPVL said the broader environment remains uncertain. The company outlined plans to stabilise production, reinforce supply-chain resilience, step up brand-led demand initiatives and accelerate cost-saving measures. TMPVL noted that domestic demand strengthened after the implementation of GST 2.0 and said it expects business performance to improve in the second half of FY26.