Tata Motors Q2 hit by JLR cyber incident, macroeconomic pressures

Tata Motors Passenger Vehicles Limited reported a PBT loss of ~Rs. 5,500 Cr for Q2 FY26, largely driven by a cyber incident at Jaguar Land Rover (JLR) which led to a 24% drop in JLR revenues. An additional exceptional loss of ~Rs. 2,600 Cr was incurred due to cyber incident-related expenses and a voluntary redundancy program at JLR. Free cash flow for the first six months stood at negative ~Rs. 18,000 Cr.

Despite the JLR challenges, the India business showed resilience with 15% top-line growth. Domestic PV business saw a strong rebound, with volumes growing 10% year-on-year in Q2 FY26. EV penetration sharply improved from 12% to 17%, contributing to almost 45% of the portfolio mix alongside CNG. The company expects Q3 production losses and a smaller exceptional charge related to the cyber incident, with a return to normal production in Q4.

For the full year, the company projects EBIT to be in the range of 0% to 2% positive, and free cash flow in the range of negative £2.2 bn to negative £2.5 bn. Structural changes like the new China luxury tax and U.S. tariffs are expected to structurally impact margins.