Tata Motors PV Q2: profit spike from one-off; JLR stumbles on cyberattack, guidance cut

Passenger Vehicles posted a massive net profit surge to ₹76,170 crore for Q2FY26, driven by an exceptional ₹82,620-crore gain from the carve-out of its commercial vehicle business, masking an underlying loss at the Ebitda level. Consolidated revenue dropped 14% to ₹72,350 crore, mainly due to a 25% slump in Jaguar Land Rover’s sales following a severe production halt from a cyberattack and higher US tariffs. JLR reported a negative Ebit margin of –8.6% and free cash outflow of £790 million; the full-year guidance for Ebit margin is now cut to 0–2% (from 5–7%) and cash outflow to £2.2–2.5 billion, reflecting the volume loss and operational disruptions that cannot be recouped this fiscal.​ India business trends TMPV’s passenger vehicle and EV businesses remained resilient, with PV revenue up 15.6% and sales volume rising 11%.​ Ebitda margin for PVs stood at 5.8%; the EV segment showed sequential margin improvement on PLI benefits and robust demand.​ Festive GST cuts and new launches such as Nexon/Harrier EV supported strong volumes into H2.​ JLR headwinds and sector impact Cyberattack disruptions, combined with external tariff drags, led to material operational and profitability impacts at JLR, with lost production days and delayed electrification ramp.​ The incident forced a sharp downgrade in margin and cash flow guidance for JLR, impacting the group outlook for FY26.​ Industry lens This result highlights diverging fortunes: underlying strength and policy tailwinds for India PVs and EVs, but vulnerability to execution risks and geopolitical headwinds for international luxury auto brands. Investors will track continued ramp-up of new models, further GST impacts, and JLR recovery milestones to shape H2 expectations. No Recommendations Source: The Economic Times