Tata Motors PV posts loss of Rs 3,486 crore in Q3 as JLR’s cyber impact slows results

Tata Motors Passenger Vehicles (TMPV) fell to a consolidated net loss in the December quarter from a year earlier profit, hit by the ongoing fallout from a cyber attack on British luxury car company Jaguar Land Rover and a challenging global demand environment.The Mumbai-based carmaker posted a net loss of ₹3,486 crore in the three months ended December 31, compared to a net profit of ₹5,406 crore a year earlier. JLR accounted for almost two-thirds of consolidated sales.

Revenue from operations fell 26% from ₹ 94,472 crore to ₹ 70,108 crore, due to lower volumes and production disruptions at JLR.Earnings before interest and taxes (EBIT) turned negative at ₹3,300 crore, down from Rs11,000 crore in the corresponding period last year.

The December quarter continued to be hit by the JLR cyber incident, which disrupted production and global automotive distribution, following a similar impact in the previous quarter. The cyber attack caused an estimated cash outflow of around £1.5 billion, with an impact on profits of more than £300 million. JLR volumes were impacted by an estimated 30,000 vehicles in the December quarter, company executives told reporters in a post-earnings call.

JLR Chief Financial Officer Richard Molyneux said the company also faced weakness in key markets such as China and the US, rising customer acquisition costs and intense competition. “While operations have now returned to normal, the cyber incident and weaker global demand continued to weigh on performance in the third quarter,” he said, adding that JLR expects significant improvement in the fiscal fourth quarter, with no exceptional events expected.

Tata Motors’ domestic passenger car business, on the other hand, showed a gradual recovery, helped by higher volumes and incentives, although this was not enough to offset JLR’s setback. Shailesh Chandra, Managing Director and CEO of Tata Motors Passenger Vehicles, said demand conditions in India remain healthy. “Products like Punch continue to perform strongly and Sierra is expected to revive demand as production increases,” he said.

Dhiman Gupta, chief financial officer, said commodity prices remain under pressure, impacting about 2% of sales, but added that cost discipline and volume recovery should support margins. “Despite the near-term challenges, the company has maintained its full-year guidance,” he said.

Tata Motors expects domestic demand to remain resilient and JLR’s performance to recover as cyber-related disruptions subside, even as global market conditions remain uncertain.

Shares of Tata Motors closed 0.33% lower at Rs374.15 apiece on the BSE, almost in line with a 0.6% decline in the benchmark Sensex. The gains were reported after market hours.