Tata Motors Passenger Vehicles Limited reported Q2 FY26 results, marked by challenges from a cyber incident at JLR but a strong rebound in the domestic PV market. The domestic PV business saw 10% year-on-year volume growth and increased market share. JLR revenues declined 24% due to lost production, resulting in a ₹5,500 Cr PBT loss. Despite headwinds, Tata Motors aims for long-term sustainable growth through strategic initiatives and cost management.
Q2 FY26 Financial Performance Overview
Tata Motors Passenger Vehicles Limited faced a challenging Q2 FY26, primarily due to a cyber incident affecting Jaguar Land Rover (JLR). Consolidated financial performance saw JLR revenues drop by 24%. However, this was partially offset by a 15% top-line growth in the India business. The quarter resulted in a PBT loss of approximately ₹5,500 Cr, with an additional exceptional loss of around ₹2,600 Cr related to the cyber incident and voluntary redundancy programs at JLR.
JLR Performance and Recovery
The cyber incident forced a system shutdown, impacting production and sales. Wholesales were down to approximately 66,000 units. Actions are underway to harden systems and ramp up production, with plants operating near capacity. Aims to recover from the production losses experienced during the quarter and anticipate a return to normalcy by Q4.
Domestic PV Business Rebound
The domestic Passenger Vehicle (PV) business showed a strong rebound after a weak Q1. Volumes grew by 10% year-on-year. Market share improved to 12.8% for the quarter. Festive months saw further market share gains, reaching 13.7% to 14% after GST rate cuts. Electric Vehicle (EV) penetration improved significantly, accounting for almost 45% of the portfolio mix when combined with CNG vehicles. Expects revenue growth of 15% year-on-year and a return to FY2025 profitability levels.
EV and CNG Segment Growth
The EV segment continues to show strong performance, with increased offtakes. The market share has been consistently clocking 42%, driven by successful launches like Nexon.ev and Harrier.ev. The company maintains a proactive product portfolio strategy, with plans to introduce new models like Sierra.ev. The CNG segment also witnessed industry-beating growth, driven by network expansion and accessibility.
Strategic Outlook and Future Plans
Tata Motors aims to continue its growth momentum by leveraging its robust demand pipeline, supported by comprehensive marketing campaigns. The company will also focus on strengthening its EV portfolio and expanding its presence in key markets. Efforts to enhance profitability include operating leverage, improved product mix, and cost reduction measures. Structural actions are being taken to strengthen the network and customer service, driving long-term sustainable growth.
Source: BSE
