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

Executive summary

• Q3 FY26 saw consolidated revenue decline 25.8% YoY to ₹70,108 Cr, mainly due to a cyber incident at JLR, while domestic passenger vehicle business posted robust growth, record sales, and margin improvement QoQ, maintaining the #2 market position in India.

• JLR revenue dropped 39.4% YoY to £4.5bn, with EBIT margin at -6.8%, impacted by production shutdown, legacy model wind-down, and market headwinds in China and the US.

• Tata Passenger Vehicles revenue rose 24% YoY to ₹15,317 Cr, with EBITDA margin at 7.0% and EBIT margin at 1.2%, driven by strong EV growth and new launches.

• EV business achieved a milestone of 2.5 lakh units on road, with 50% YoY volume growth and market share reaching 46% in December.

Financial highlights

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

• JLR Q3 FY26 revenue was £4.5bn, down 39.4% YoY; EBIT margin -6.8%; loss before tax and exceptionals was £310m.

• Group net debt stood at ₹39,400 Cr at quarter end; JLR net debt at £3.3bn, with total liquidity of £6.6bn.

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

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

Outlook and guidance

• JLR reaffirmed FY26 EBIT margin guidance at 0–2% and expects a sharp Q4 recovery as production normalizes; negative free cash flow expected between £2.2bn and £2.5bn.

• Domestic PV business anticipates continued robust demand and double-digit growth, with margin improvement expected in Q4 due to new launches and price hikes.

• Strategic Investor Day scheduled for June 2026 will provide further long-term guidance.