Mumbai, February 5, 2026 – Tata Motors Passenger Vehicles Limited (TMPVL) reported challenging third-quarter results for FY2026, with significant losses due to the cyber incident at Jaguar Land Rover (JLR), while domestic passenger vehicle business showed robust growth and the company declared exceptional gains from its business restructuring.
Financial Performance Highlights (Consolidated)
Q3 FY2026 (October-December 2025)
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Net Loss: ₹3,483 crore – Significant decline from profit of ₹5,485 crore in Q3 FY2025
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Revenue from Operations: ₹70,108 crore – 25.8% YoY decline from ₹94,472 crore
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EBIT: -4.7% (down 1290 bps YoY)
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PBT (before exceptional items): -₹3,136 crore (down ₹9,242 crore YoY)
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EPS from Continuing Operations: -₹9.47 (Basic & Diluted)
Nine Months FY2026 (April-December 2025)
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Net Loss from Continuing Operations: ₹7,255 crore
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Revenue: ₹230,135 crore – 14% YoY decline
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Free Cash Flow: Negative at ₹(17.9)K crore for the quarter
Key Business Segment Performance
Jaguar Land Rover (JLR)
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Revenue: £4.5 billion – 39.4% YoY decline
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EBIT Margin: -6.8% (down 1580 bps YoY)
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PBT (before exceptional items): £(310) million
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Key Issues: Cyber incident impact, legacy Jaguar model wind-down, China market deterioration, US tariffs
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Free Cash Outflow: £(1.5) billion for Q3, £(3.1) billion YTD
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Net Debt: £3.3 billion
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Guidance Reaffirmed: EBIT margin 0-2% for FY26
Tata Passenger Vehicles (Domestic)
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Revenue: ₹15,317 crore – 24% YoY growth
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EBIT Margin: 1.2% (down 50 bps YoY)
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PBT (before exceptional items): ₹302 crore
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Market Share: 13.8% in Q3 FY26 (#2 position)
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EV Market Share: 43.6%
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Net Cash Position: ₹5.1K crore
Exceptional Items & Business Restructuring
Major Exceptional Items (Q3 FY2026)
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JLR Cyber Incident Expenses: ₹0.8K crore
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New Labour Code Implementation: ₹0.4K crore
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Stamp Duty Charges: ₹0.4K crore
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Total Exceptional Loss: ₹1,597 crore
Business Restructuring Gains
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Exceptional Gain on Disposal: ₹82,616 crore from demerger of commercial vehicles business
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Scheme Effective Date: October 1, 2025 (Appointed date: July 1, 2025)
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Resulting Net Profit Including Gains: ₹76,767 crore for nine months
Operational Highlights
Domestic Passenger Vehicle Business
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Highest-ever Quarterly Wholesales: 171K units (+22% YoY)
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Retail Sales: Crossed 200K mark for first time
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Key Products: Nexon (highest-selling model in India in Q3), Punch, Sierra
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Product Launches:
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All-new Sierra (70,000+ orders on Day 1)
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Harrier and Safari with new 1.5L HYPERION Turbo-GDi engine
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New Tata Punch
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Re-entry into ICE fleet segments with XPRES variants
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EV Milestone: Surpassed 250,000 cumulative EV sales
Jaguar Land Rover Operational Highlights
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Production Recovery: Returned to normal levels by mid-November 2025
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New Product Development: New Jaguar prototype received positive media response
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Range Rover SV Black: Debuted in USA
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Defender: Won Dakar Rally Stock Class in debut year
Also Read: IndianOil Q3 Profit Soars 322% to ₹12,126 Crore on Strong Refining Margins
Management Commentary
Dhiman Gupta, Chief Financial Officer, TMPVL:
"Overall, it was a challenging quarter as anticipated on account of carryover 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."
PB Balaji, Chief Executive Officer, JLR:
"Q3 was a challenging quarter for JLR with performance impacted by the production shutdown we initiated in response to the cyber incident. Thanks to the commitment of our dedicated teams, we returned vehicle production to normal levels by mid-November, and we are focused on building our business back stronger."
Shailesh Chandra, Managing Director & CEO, TMPVL:
"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."
Financial Position & Ratios
Key Metrics (as of December 31, 2025)
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Net Debt: ₹39.4K crore
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Debt-Equity Ratio: 0.61 times
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Current Ratio: 0.81 times
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Net Worth: ₹107,652 crore
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Free Cash Flow (Domestic PV): ₹0.3K crore positive in Q3
Corporate Restructuring Update
Composite Scheme of Arrangement
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Demerger: Commercial vehicles business transferred to Tata Motors Limited (formerly TML Commercial Vehicles Limited)
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Amalgamation: Tata Motors Passenger Vehicles Limited merged into the company
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NCLT Approval: August 25, 2025
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Financial Impact: ₹82,616 crore gain recognized (not considered for EPS calculations)
New Labour Codes Impact
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Implementation Date: November 21, 2025
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Financial Impact: ₹427 crore recognized as exceptional item
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Components: Gratuity (₹348 crore) and long-term compensated absences (₹79 crore)
Acquisition Activity
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Es-Tee GmbH Acquisition: By Tata Technologies Pte Ltd (Singapore)
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Purchase Consideration: ₹671 crore
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Goodwill Recognized: ₹407 crore
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Customer Intangible Assets: ₹365 crore
Market Outlook & Guidance
Q4 FY2026 Expectations
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Sharp Improvement Anticipated: Led by JLR volume normalization
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Domestic Business: Continued robust demand
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JLR Guidance: EBIT margin 0-2% for FY26, free cash outflow £2.2-2.5 billion
FY27 Outlook
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Strong Product Pipeline: Expected to accelerate growth trajectory
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Market Share Growth: Continued expansion in domestic market
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Margin Improvement: Focused approach to enhance profitability
Audit & Compliance
The standalone financial results were audited by B S R & Co. LLP, while consolidated results underwent limited review. The Board meeting commenced at 11:30 AM and concluded at 3:40 PM on February 5, 2026.
Industry Challenges & Opportunities
Challenges
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Cyber Security: JLR incident highlighting operational vulnerabilities
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Geopolitical Factors: US tariffs, China market conditions
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Regulatory Changes: New labour codes, EPR requirements
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Market Volatility: Global economic uncertainties
Opportunities
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EV Leadership: Strong position in Indian EV market
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Product Innovation: New launches across segments
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Market Recovery: Expected normalization in JLR operations
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Domestic Growth: Positive GST 2.0 impact and festive demand
About Tata Motors Passenger Vehicles Limited:
TMPVL is India's leading automotive company, with a portfolio that includes passenger vehicles, electric vehicles, and the prestigious Jaguar Land Rover brands. The company is focused on sustainable mobility solutions and technological innovation.