Tata Motors Passenger Vehicles (TMPV) on Friday reported a 13 per cent year-on-year (Y-o-Y) decline in consolidated revenue from operations for the second quarter of 2025-26 (Q2FY26), largely due to the cyberattack on its subsidiary Jaguar Land Rover (JLR) in late August that forced a shutdown of its manufacturing operations for over five weeks.
Photograph: Francis Mascarenhas/Reuters
This is TMPV’s first results announcement since its demerger from the commercial vehicles business earlier this month.
The inclusion of a notional profit of Rs 82,616 crore from the ‘disposal of discontinued operations’ (demerger of commercial vehicles business), resulted in the consolidated net profit rising to Rs 76,248 crore in the second quarter.
Before this inclusion, the company incurred a loss of Rs 6,368 crore in this quarter.
JLR’s revenue for the quarter declined by 24 per cent Y-o-Y, while its revenue for the first half of FY26 declined 16.3 per cent Y-o-Y.
Other than the cyberattack, the planned phase-out of legacy Jaguar models ahead of the “new Jaguar launch” also played its part.
From 2026, Jaguar will become an electric vehicle-only brand.
The profit of JLR was dragged down not just by the cyber incident but also due to the ongoing impact of US tariffs, as well as reduced sales.
In light of the challenges faced, JLR has revised its FY26 earnings before interest and taxes (EBIT) guidance to 0-2 per cent.
PB Balaji, chief financial officer of the entire Tata Motors group said, “It has been a difficult period for the business.
“However, we are committed to emerging from the cyber incident even stronger.
“The demand situation remains challenging globally but domestically there are signs of resurgence.”
Shailesh Chandra, managing director and CEO, Tata Motors Passenger Vehicles, said, “Q2FY26 was a landmark quarter for Tata Motors Passenger Vehicles.
“Our agile approach, strong portfolio and impactful marketing helped us drive this growth trajectory.
“With a robust booking pipeline and rising consumer confidence, we are poised to sustain this momentum in H2FY26, guided by our several new launches ahead.”
The passenger vehicle segment saw a double-digit year-on-year growth in wholesale volumes and registrations, supported by Tata Motors’ multi-powertrain portfolio, with CNG and EVs together contributing 45 per cent of total volumes.
EV sales jumped nearly 60 per cent YoY to around 25,000 units.
A reinvigorated demand environment also drove record sales of 60,000 units in September, helping improve revenues and deliver sequential gains in profitability.
Chandra described September and October as “blockbuster months,” each crossing the 60,000-unit mark and helping Tata secure the number two OEM position in the market.
Inventory levels remain healthy at 27 days, with plans to bring them down further.
Looking ahead, Tata Motors expects its upcoming quarters to be strong, backed by robust festive bookings, upcoming launches such as the Sierra EV, and sustained momentum through the second half.
Nexon was the number 1 model in India, across both September and October.
Tata also recorded its highest ever Harrier and Safari volumes.
“We remain very optimistic about the business in India, and fully geared up to deliver a very strong second half of FY26.
“We anticipate healthy demand momentum for the Indian EV industry on the back of reduced GST, ” Chandra added.
The company’s performance was also impacted due to weaker demand from China.
Due to cyber incidents and US tariff pressures, the company sharply cut its FY26 guidance, lowering its EBIT margin and projecting a free cash outflow of £2.2–2.5 billion, while indicating that JLR is expected to see a better second half as production normalises.
Tata is also strengthening cybersecurity and rebuilding its systems, acknowledging that “a lot of work is currently happening in real time to harden our external interfaces”.
The results were announced during the market hours.
The company’s stock fell 1.6 per cent ending the day’s trade at Rs 391.6 per share on BSE.
