Tata Motors PV shares plunge as JLR woes, cyberattack hit Q2 performance

Tata Motors Passenger Vehicles (TMPV) shares declined sharply on Monday after the company reported a weak September-quarter performance marked by deep losses at Jaguar Land Rover (JLR), a severe cut in full-year margin guidance, and the financial fallout of a major cyberattack.

The stock fell as much as 7.2% in early trade to Rs 363, compared with Friday’s closing price of Rs 391.2, as investors assessed the extent of JLR’s operational disruptions and the near-term outlook for the standalone passenger vehicle business.

At the time of writing, the stock was trading at Rs 375.

The Q2 FY26 results were Tata Motors PV’s first quarterly report following the demerger of the Commercial Vehicles business and came at a time when global demand for premium vehicles is softening.

Analysts noted that the scale of JLR’s losses, the EBITDA miss, and ongoing production challenges have significantly clouded the recovery trajectory.

Steep margin guidance cut and heavy losses at JLR

The quarter’s performance was dominated by JLR’s deterioration.

The luxury car unit slashed its full-year EBIT margin outlook to 0–2%, down sharply from its earlier projection of 5–7%.

It also warned of negative free cash flow of £2.2–2.5 billion for the year.

JLR posted a £485-million loss before tax and exceptional items, with revenue falling 24.3% year-on-year to £24.9 billion.

Margins turned negative after a September production halt triggered by a cyberattack.

On an adjusted basis, Tata Motors PV would have reported a Rs 6,370-crore loss, compared with a Rs 3,056-crore profit in the prior-year quarter.

The standalone PV business logged an adjusted loss of Rs 237 crore despite a 6% rise in revenue to Rs 12,751 crore.

EBITDA fell sharply to Rs 303 crore from Rs 717 crore a year earlier, compressing the margin to 2.4%.

At the consolidated level, TMPVL reported revenue of Rs 72,349 crore, down 14% year-on-year.

EBITDA swung to a loss of Rs 1,404 crore, compared with a Rs 9,914-crore gain last year.

The company also recorded a foreign-exchange loss of Rs 361 crore versus a gain of Rs 436 crore last year.

Free cash flow was negative at Rs 8,300 crore, primarily due to lower volumes after the cyberattack.

Brokerage views split as concerns intensify

Brokerages maintained a cautious stance, noting that while India’s passenger vehicle business remains relatively resilient, it cannot offset the severity of JLR’s decline.

Jefferies reiterated its underperform rating with a Rs 300 price target, highlighting structural pressures at JLR including rising competition, China’s consumption tax, discounting trends, the battery-electric transition, and ageing models.

It expects the impact of the cyberattack to carry into Q3, with normalization only from Q4.

Goldman Sachs maintained a neutral view with a Rs 365 target, stating that the Q2 miss stemmed largely from deeper-than-expected disruption at JLR.

Management now expects 30,000 units of lost production in Q3, higher than the 20,000 units lost in the previous quarter.

CLSA, however, remained constructive, retaining its outperform rating and a Rs 450 price target despite acknowledging the margin shock.

The firm highlighted strong India PV EBITDA margins of 5.8% and expects GST cuts on small-to-mid SUVs to support domestic performance.

Motilal Oswal initiated coverage with a sell rating and a Rs 312 target, projecting a 20% downside.

It cut JLR’s valuation multiple to reflect ongoing headwinds and lowered JLR’s FY26 EBIT margin assumption to 2%.