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What is the story about?
Tata Motors Passenger Vehicles Ltd. (TMPVL) one of two demerged entities of Tata Motors Ltd. reported a net loss of ₹3,486 crore for the October-December period, led by multiple one-offs. This is in comparison to a net profit of ₹5,485 crore during the same quarter last year.
The management though, is optimistic that the fourth quarter will see a sharp improvement as the domestic business continues to witness robust demand, and the company is confident of accelerating growth through new launches and innovations.
Revenue for the quarter increased by 25% from the same quarter last year to ₹15,268 crore, which is lower than the CNBC-TV18 poll of ₹16,107 crore.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter rose 7% from last year to ₹689 crore, well below the CNBC-TV18 poll estimate of ₹1,092 crore.
EBITDA margin narrowed by 80 basis points to 4.5% from 5.3% last year, and also was lower than the CNBC-TV18 poll of 6.8%.
Consolidated free cash flow for the quarter was a negative ₹1,790 crore, due to low volumes and adverse working capital impact at JLR.
JLR's revenue for the quarter fell 39% from last year to £4.5 billion, driven by a reduction in wholesale volumes impacted due to the cyber incident. Production normalcy only returned in mid-November. Volumes and profitability were also impacted from last year due to the continued planned wind down of the legacy Jaguar models ahead of the new Jaguar launch and deteriorating market conditions in China.
"JLR remains resilient and well placed to address the economic, geopolitical and policy challenges the industry faces. Investment spend is expected to remain at £18bn over the five-year period from FY24," the company said in a filing.
The company has maintained its EBIT margin guidance for 0% to 2% in financial year 2026 and free cash outflow to be between £2.2 billion to £2.5 billion.
“Q3 was a challenging quarter for JLR with performance impacted by the production shutdown we initiated in response to the cyber incident, the planned wind down of legacy Jaguar, and US tariffs," CEO PB Balaji said.
"While the external environment remains volatile, we expect performance to improve significantly in the fourth quarter and we have clear plans to manage global challenges. We have a resilient business and remain focused on transformation. 2026 is set to be an exciting year for JLR as we develop our next generation vehicles, including the launch of Range Rover Electric and the unveiling of the first new Jaguar," he added.
Shares of Tata Motors Passenger Vehicles Ltd. ended 0.3% lower before the earnings announcement at ₹374.15.
The management though, is optimistic that the fourth quarter will see a sharp improvement as the domestic business continues to witness robust demand, and the company is confident of accelerating growth through new launches and innovations.
Revenue for the quarter increased by 25% from the same quarter last year to ₹15,268 crore, which is lower than the CNBC-TV18 poll of ₹16,107 crore.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter rose 7% from last year to ₹689 crore, well below the CNBC-TV18 poll estimate of ₹1,092 crore.
EBITDA margin narrowed by 80 basis points to 4.5% from 5.3% last year, and also was lower than the CNBC-TV18 poll of 6.8%.
Consolidated free cash flow for the quarter was a negative ₹1,790 crore, due to low volumes and adverse working capital impact at JLR.
JLR's revenue for the quarter fell 39% from last year to £4.5 billion, driven by a reduction in wholesale volumes impacted due to the cyber incident. Production normalcy only returned in mid-November. Volumes and profitability were also impacted from last year due to the continued planned wind down of the legacy Jaguar models ahead of the new Jaguar launch and deteriorating market conditions in China.
"JLR remains resilient and well placed to address the economic, geopolitical and policy challenges the industry faces. Investment spend is expected to remain at £18bn over the five-year period from FY24," the company said in a filing.
The company has maintained its EBIT margin guidance for 0% to 2% in financial year 2026 and free cash outflow to be between £2.2 billion to £2.5 billion.
“Q3 was a challenging quarter for JLR with performance impacted by the production shutdown we initiated in response to the cyber incident, the planned wind down of legacy Jaguar, and US tariffs," CEO PB Balaji said.
"While the external environment remains volatile, we expect performance to improve significantly in the fourth quarter and we have clear plans to manage global challenges. We have a resilient business and remain focused on transformation. 2026 is set to be an exciting year for JLR as we develop our next generation vehicles, including the launch of Range Rover Electric and the unveiling of the first new Jaguar," he added.
Shares of Tata Motors Passenger Vehicles Ltd. ended 0.3% lower before the earnings announcement at ₹374.15.
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