Tata Motors Passenger Vehicles Q3 results: Auto major reports a loss of ₹3,483 crore; JLR revenue falls 39.4% YoY

Tata Motors Passenger Vehicles Q3 results: Tata Motors Passenger Vehicles (PV), on Thursday, February 5, reported a loss of ₹3,483 crore for the December quarter of the current financial year against a profit of ₹5,485 crore in the corresponding quarter of the previous financial year.

Total consolidated revenue from operations dropped to ₹70,108 crore, falling 25.8% from ₹94,472 crore in the corresponding quarter of the previous financial year.

The company said the JLR (Jaguar Land Rover) cyber incident was carried over in Q2 results, and it is poised for a strong recovery in Q4.

"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,” said Dhiman Gupta, Chief Financial Officer of Tata Motors PV.

Tata Motors PV's consolidated EBITDA declined by 1,120 bps YoY to 2.2%.

Tata Motors said its domestic performance improved sequentially due to higher volumes and incentives.

Tata Motors PV said its performance continued to be significantly impacted by the cyber incident at JLR. Domestic operations, however, improved sequentially, supported by higher volumes and incentives.

PBT (before exceptional items) for Q3 FY26 stood at - ₹3,100 crore. The company reported exceptional items of ₹1,600 crore, mainly comprising expenses related to the JLR cyber incident ( ₹800 crore), the New Labour Code ( ₹400 crore), and stamp duty ( ₹400 crore). This resulted in a reported PBT of - ₹4,700 crore, said the company.

Net loss for Q3 FY26 came in at ₹3,500 crore, after recognising a deferred tax asset at JLR.

The consolidated free cash flow for the quarter remained negative at - ₹17,900 crore, driven by lower volumes and an adverse working capital impact at JLR. Net debt as of December 31, 2025, stood at ₹39,400 crore, said the company.

"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 the enterprise missions programme aimed at enhancing savings and cash flows," said the company.

"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 normalisation of JLR volumes," the company said.

JLR Q3 performance

It was a challenging quarter for JLR. The segment's revenue dropped 39.4% to £4.5 billion, EBITDA dropped by 1,350 basis points to 0.7%, EBIT turned negative at -6.8%, falling 1,580 basis points, and PBT (before exceptional items) fell to -£310 million.

JLR volumes were impacted by the cyber incident and the time taken thereafter to distribute vehicles globally. Vehicle production returned to normal levels by mid-November.

Planned wind down of legacy Jaguar models ahead of new Jaguar launch, a deterioration of market conditions in China, and ongoing incremental US tariffs impacting JLR’s US exports also impacted volumes.

“While the external environment remains volatile, we expect performance to improve significantly in the fourth quarter, and we have clear plans to manage global challenges. 2026 is set to be an exciting year for JLR as we develop our next generation vehicles, including the launch of Range Rover Electric and the unveiling of the first new Jaguar,” said PB Balaji, Chief Executive Officer.

Tata Motors PV Q3 performance

The segment's Q3FY26 revenue stood at ₹15,300 crore, up 24%, but EBITDA dropped by 80 basis points to 7%. EBIT declined by 50 basis points to 1.2% and PBT (before exceptional items) stood at ₹300 crore.

"We remain confident about the PV industry’s growth in light of positive demand momentum seen post GST 2.0. With our product launches and 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," said the company.

“In Q3 FY26, we recorded our highest-ever quarterly wholesales at 1,71,000 units, while retail sales crossed the 2,00,000 mark for the first time, driven by strong demand tailwinds from GST 2.0 and a robust festive season," said Shailesh Chandra, Managing Director and CEO, Tata Motors Passenger Vehicles.

"Improved market traction also propelled our revenues to a new quarterly peak, registering a 24% year-on-year growth. 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,” said Chandra.

Tata Motors PV share price declined 0.33% to end at ₹374.15 on the BSE on Thursday.