Tata Motors PV Q3 Results 2026 Highlights: Tata group firm posts ₹3,486-crore loss on JLR hit, sees recovery from Q4

In Q3 FY26, we recorded our highest-ever quarterly wholesales at 171k units, while retail sales crossed the 200k mark for the first time, driven by strong demand tailwinds from GST 2.0 and a robust festive season. With strengthened value proposition for our products, we witnessed robust demand during the quarter, with Nexon emerging as the highest-selling model in India in Q3, while Punch also saw enhanced volumes.

In EVs, we continued to sustain our growth trajectory with our highest-ever quarterly retails. Improved market traction also propelled our revenues to a new quarterly peak, registering a 24% year-on-year growth.

The quarter was also highlighted by major product launches, including the launch of the eagerly awaited Sierra, which has received an exceptional customer response, and the unveiling of the Harrier and Safari in petrol. Earlier this month, we also launched the popular Punch in a new avatar, which has been received well by the market. Going forward, we expect to accelerate growth with a strong product pipeline, healthy inventory levels, and sustained demand across segments, while strengthening our margin trajectory.

— Shailesh Chandra, Managing Director & CEO, Tata Motors Passenger Vehicles

Looking ahead, we remain confident about the PV industry’s growth in light of positive demand momentum seen post GST 2.0. With our product launches & interventions commencing deliveries in Q4 and a strong slate of upcoming launches, Tata Motors PV is well poised to accelerate its growth trajectory in FY27, the company said.

Closing Cash balance for domestic business at ₹8.9K Cr with gross debt of ₹3.8K Cr, resulting in Net Cash position of ₹5.1K Cr.

PV and EV volumes during the quarter were at 171K units (+22% YoY) driven by impact of reduction in GST rates and robust performance of products.

Revenues in Q3 FY26 were up 24% YoY at ₹ 15.3K Cr, while EBITDA margins were at 7.0%, down 80 bps YoY. The EBIT margins stood at 1.2% (-50 bps YoY), as adverse realisations, commodities, fixed costs, D&A offset the impact of favourable volumes and incentive accrual. EBITDA margins and EBIT margins improved 120 bps and 100 bps QoQ.

JLR remains resilient and well placed to address the economic, geopolitical and policy challenges the industry faces. Investment spend is expected to remain at £18bn over the five-year period from FY24. In light of the challenges faced, FY26 guidance is reaffirmed, with EBIT margin in the range of 0% to 2% and free cash outflow of £2.2bn to £2.5bn.

JLR volumes and profitability were also both impacted year-on-year by the continued planned wind down of legacy Jaguar models ahead of the new Jaguar launch, and deterioration of market conditions in China.

Profitability was also impacted by the cyber incident, ongoing incremental US tariffs and increased VME. Loss before tax and exceptional items was £(310)m for Q3 and £(444)m YTD, down from a profit of £523m and £1.6bn respectively, a year ago. EBIT margin was (6.8)% for the third quarter, down from 9.0% a year ago, and (2.9)% YTD, down from 7.8% YTD last year. Exceptional items of £74m in the quarter includes £64m of costs related to the cyber incident. Loss after tax in the quarter was £(298)m, compared to a profit of £375m in the same quarter a year ago. YTD, the loss after tax was £(609)m compared to a profit of £1.2bn this time last year.

• New Jaguar prototype passenger rides received overwhelmingly positive reaction from global media

• Range Rover SV Black, epitomising the most exclusive, luxurious and crafted models, debuted in USA at Design Miami

• Defender shows unrivalled capability by winning the Dakar Rally Stock Class, with Defender D7X-R vehicles placed first and second, in Defender’s debut year in the world's toughest off-road challenge

• EBIT guidance reaffirmed at 0% to 2% for FY26

• Free cash outflow for the quarter was £(1.5)bn and £(3.1)bn YTD

• Closing Cash balance was £1.9bn and net debt £3.3bn, with gross debt of £5.2bn

• Total liquidity as at December 31, 2025, was £6.6bn, including the undrawn £1.7bn RCF, an undrawn £1.5bn bridge facility and an undrawn £1.5bn UKEF guaranteed commercial loan

• Business well positioned for significantly improved performance in Q4

JLR Q3 revenue fell sharply by 39.4% to £4.5 billion. Its EBITDA margin was lower by 1350 bps to 0.7%.

The company said volumes impacted following the cyber incident and the time taken thereafterto distribute vehicles globally, as vehicle production returned to normal levels by mid-November.

Dhiman Gupta, Chief Financial Officer, TMPVL said, "Overall, it was a challenging quarter as anticipated on account of carry over impact of Cyber Incident at JLR, while domestic business delivered robust revenue and margin improvement QoQ. We expect performance to significantly improve in Q4 with recovery at JLR and continuing growth in domestic market share. We are well poised to seize the opportunities and drive growth through an exciting product portfolio and focused approach to achieve margin improvement”.

Commenting on the outlook of the company, Tata Motors PV said that the overall global demand continues to remain challenging.

“We will step up our brand-led actions at JLR to drive up demand for our products and execute enterprise missions programme aimed at enhancing savings and cash flows. Domestic business continues to witness robust demand, and we will accelerate growth through exciting launches and innovations. Overall, we expect a sharp improvement in Q4, led by normalization of JLR volumes,” it added.

The consolidated free cash flow for the quarter was negative at ₹(17.9)K crore, driven by lower volumes and adverse working capital impact at JLR. Net Debt as on December 31, 2025, was ₹39.4K crore.

The company said it witnessed exceptional items of ₹1600 crore for Q3 FY26 majorly comprised of expenses pertaining to JLR Cyber Incident, New Labor Code and Stamp duty of ₹0.8K Cr, ₹0.4K Cr and ₹0.4K Cr, respectively, resulting in a loss before tax of ₹4700 crore.

The performance continued to be impacted significantly by the cyber incident at JLR, as indicated earlier. The domestic performance improved QoQ on account of higher volumes and incentives, the company said.

TMPVL delivered revenues of ₹69,605 crore, down 25.8% YoY and EBIT of ₹(3300) crore as against ₹11,000 crore in the same period last year.

Tata Motors on Thursday announced a ₹3,486 crore consolidated loss for the quarter ended December 2025 as against a profit of ₹5,406 crore impacted by expenses arising out of cyber hit at JLR, and changes in Labour code.

Shares of Tata Motors PV ended the day marginally lower by 0.33% at ₹374.15 apiece on the BSE today. The stock had fallen as much as 3% during intraday deals.

Consolidated revenue is likely to plunge 27% YoY owing to production hit at JLR due to cyber attack incident despite robust growth in the India PV division.

Nuvama recently upgraded TMPV to ‘BUY’ (TP: ₹430) from ‘REDUCE’ supported by reasonable valuations (4x/3x FY27E/28E EV/EBITDA) following a ~8% correction since its recent listing, and expectations of robust prospects for JLR and India PV in FY27E/28E.

Tata Motors PV share price rebounded from day's low ahead of the Q3 results announcement today. The stock had declined almost 3% in intraday deals. As of 2.35 pm, Tata Motors PV share price was trading at ₹373.50, down 0.5%.

Overall, KIE expects EBITDA margin to increase by 140 bps QoQ, driven by (1) operating leverage benefits and (2) favorable net pricing.

KIE expects reported EBITDA margin to decline by 15.3% yoy to negative 1.1%, driven by (1) negative operating leverage, (2) higher tariffs pertaining to US sales and (3) adverse FX (GBP appreciation versus USD), partly offset by a richer product mix. Overall, we expect JLR EBIT margin to come in at (-)9% in 3QFY26 (-40 bps qoq).

After the cyber incident in 2Q, we expect JLR to post a steady recovery in volumes (+18% QoQ). Given this, we expect JLR’s margins to improve to 5.4%, from -1.6% QoQ, said MOSL.

JLR volumes (excluding China JV) declined by 43% YoY led by weakness in China markets and production-related challenges due to the cyberattack in October. Overall, KIE expects revenues (ex-China JV) to decline by 41% YoY in 3QFY26, driven by decline in volumes. We expect ASP to increase by 3% YoY, driven by a richer model mix, partly offset by higher discounts.

India PV volumes grew 22% YoY, fueled by the strong festive and marriage season demand. Led by operating leverage benefits, we expect the India margin to improve 160bp QoQ to 7.3%, said Motial Oswal Financial Services.

Kotak Institutional Equities (KIE) expects domestic PV business revenues to increase by 33% YoY in 3QFY26, led by (1) 22% YoY increase in volumes and (2) 9-10% YoY increase in ASPs driven by a richer product mix.

Following the demerger of Tata Motors and Tata Motors Passenger Vehicles, analysts said there is unavailability of historical data. As a result, most brokerages have given their absolute profit/sales expectations without comparing it with past trends.

Tata Motors PV share price declined nearly 3% to ₹364.25 on the BSE ahead of the Q3 results today. Analysts expect Tata Motors PV to post steady growth in sales but bottomline could take a hit.

Tata Motors Passenger Vehicles will announce its Q3 results later today.

“We wish to inform you that a Meeting of the Board of Directors of Tata Motors Passenger Vehicles Limited (formerly Tata Motors Limited) is scheduled to be held on Thursday, February 5, 2026, inter alia, to consider and approve the Audited Standalone Financial Results and Unaudited Consolidated Financial Results (with Limited Review) for the third quarter and nine months ended December 31, 2025,” the company said in an exchange filing last month.