Tata Motors Passenger Vehicles (TMPV) shares tumbled nearly 6% on Monday after the company posted a weaker-than-expected performance for Q2 FY26, weighed down by a significant deterioration in Jaguar Land Rover’s (JLR) profitability, a steep reduction in full-year margin guidance, and a deeper operational hit from the recent cyberattack.
The stock opened at ₹369, down 5.7% from Friday’s close of ₹391.2, as investors assessed the extent of JLR’s disruption, the sharp EBITDA miss, and a divided view on how soon the company can recover. This was the first quarterly result for Tata Motors PV as an independent entity following the commercial vehicle business demerger.
Q2 Results: JLR Losses Deepen, Guidance Trimmed Sharply
JLR led the overall drag on performance, as the luxury automaker cut its full-year EBIT margin guidance to 0–2%, sharply lower than its earlier 5–7% outlook. The company also warned of a free cash outflow of GBP 2.2–2.5 billion for the year.
For the quarter, JLR reported a loss before tax and exceptional items of GBP 485 million, with revenue sliding 24.3% year-on-year to GBP 24.9 billion. Production was severely hampered after the cyberattack forced a shutdown in September, turning margins negative.
Adjusting for the one-time gain from the CV business demerger, the passenger vehicles division would have reported a loss of ₹6,370 crore, compared to a ₹3,056 crore profit a year ago.
On a standalone basis, TMPV posted an adjusted loss of ₹237 crore, despite a 6% revenue increase to ₹12,751 crore. Quarterly EBITDA fell to ₹303 crore from ₹717 crore last year, reducing margins to 2.4%.
Brokerage Sentiment: Cautious Tone, Mixed Recommendations
Market analysts offered varied reactions as uncertainties over JLR’s recovery and the lingering cyberattack impact weighed on sentiment.
| Brokerage | Rating | Target Price | Key Commentary |
|---|---|---|---|
| Jefferies | Underperform | ₹300 | Expects spillover impact of the cyberattack into Q3, normalization only by Q4; flagged structural challenges at JLR including competition, higher discounting and BEV transition. |
| Goldman Sachs | Neutral | ₹365 | Q2 miss driven by a larger hit from JLR; EBITDA variance at -130% vs estimates; predicts 30,000 units production loss in Q3 vs 20,000 units in Q2. |
| CLSA | Outperform | ₹450 | Highlighted steep margin hit with -8.6% EBIT vs expected -2%; October output at 17,000 units; remains positive on India PV business aided by potential GST benefit for smaller SUVs. |
Outlook: India PV Strength Not Enough to Offset JLR Pressures
While Tata Motors’ domestic passenger vehicles segment continued to grow, analysts generally believe that strong India performance may not fully counterbalance JLR’s downturn in the near term. The global luxury auto market remains challenging, and JLR is navigating headwinds including an ageing lineup, BEV transition costs, and regulatory changes in China.
With management projecting a deeper production impact in Q3 before gradual stabilization, the coming quarters remain crucial for investor confidence.
