Tata Motors PV slips into a loss in Q2 as JLR woes mount

JLR cuts operating profit margin guidance for 2025-26 fiscal year amid multiple headwinds

- Ayaan Kartik

Tata Motors Passenger Vehicles Ltd (TMPVL) slipped into losses in the September quarter as its British subsidiary Jaguar Land Rover (JLR) faced output cut and pared its profit margin guidance due to a cyber-attack at manufacturing plants, higher US tariffs and a new tax in China.

JLR, which accounts for 80% of its newly demerged parent’s revenue, cut its operating profit margin guidance to 0-2% from 5-7% for the 2025-26 fiscal amid multiple headwinds, even as it works to bring production back to the original level. JLR has projected to end the year with a negative cash flow of €2.2-2.5 billion, moving away from its earlier guidance of ending with nearly no free cash flow.

TMPVL's revenue fell 13.5% on-year to ₹72,349 crore in the second quarter, according to its filings. The company, which reported its first quarterly earnings after demerging from the combined Tata Motors Ltd, reported a loss of ₹6,368 crore for the quarter against a profit of ₹3,056 crore a year earlier.

Earnings before interest, tax, depreciation, and amortization (Ebitda) margins of the company fell 11.2 percentage points to -0.1%.