Tata Motors Passenger Vehicles (500570) Q3 25/26 earnings summary

Executive summary

• Consolidated revenue for Q3 FY26 declined 25.8% year-over-year to INR 70,108 crore, mainly due to a cyber incident at JLR, while domestic passenger vehicle business posted robust growth, record sales, and margin improvement.

• Tata Passenger Vehicles achieved record volumes, maintained the #2 market position in India, and saw strong EV and CNG segment growth, supported by new launches.

• JLR focused on production normalization post-cyber incident, with Defender winning the Dakar Rally and positive media for new Jaguar models.

Financial highlights

• Consolidated Q3 FY26 revenue was INR 70,108 crore, down 25.8% YoY; EBITDA margin fell to 2.2% from 13.4% YoY; EBIT margin dropped to -4.7% from 8.2% YoY.

• Loss before tax (before exceptionals) was INR 3,136 crore; net debt stood at INR 39,400 crore as of Dec 31, 2025.

• Exceptional provisions totaled INR 1,600 crore, including cyber incident costs, wage bill, and stamp duty.

• Free cash flow for the group was negative INR 17,900 crore, mainly due to adverse working capital and JLR operating losses.

• Tata PV and EV business reported positive free cash flow of INR 300 crore in Q3 FY26, with a net cash position of INR 5,100 crore.

Outlook and guidance

• JLR expects a sharp recovery in Q4 FY26 as production normalizes; EBIT margin guidance for FY26 reaffirmed at 0–2%, with negative free cash flow expected between GBP 2.2–2.5 billion.

• Domestic business expects double-digit, industry-leading growth for FY 2026, with mid-teens growth for the company and continued robust demand.

• Margin improvement anticipated in Q4, supported by new launches and price hikes.