Tata Motors Passenger Vehicles (TMPV), which now houses the company’s passenger vehicle, electric vehicle (EV), and Jaguar Land Rover (JLR) businesses following the recent demerger, announced its September quarter performance (Q2FY26) today, reporting a 25-fold surge in its consolidated net profit at ₹76,248 crore due to a one-time gain of ₹82,616 crore related to the demerger of the commercial vehicles unit.
However, excluding this gain, the company reported a loss of ₹6,368 crore, as overall performance was dragged down by a steep fall in JLR volumes. The automaker had reported a net profit of ₹3,056 crore in the year-ago quarter.
The consolidated revenue from operations for the reporting quarter stood at ₹71,714 crore, down 13.4% from ₹82,841 crore in the year-ago period. Sequentially too, revenue declined 18% from ₹87,141 crore posted in the preceding quarter.
Revenue at JLR, which accounts for about two-thirds of Tata Motors’ overall business, declined 24.3%, while revenue from the domestic passenger vehicle segment grew 15.6% YoY to ₹13,500 crore.
At the operating level, the company posted an EBITDA loss of ₹1404 crore, a sharp drop from ₹9,914 crore posted in September 2024 quarter.
JLR revises downward FY26 margin forecast on operational disruptions
The company cut its fiscal 2026 margin target for its Jaguar Land Rover unit, lowering its EBIT margin outlook to 0–2% for the year as the business grapples with the impact of the cyber incident, the planned wind-down of legacy Jaguar models, US tariff pressures, reduced volumes and higher VME.
JLR’s revenue dropped 24.3% year-on-year to £4.9 billion in Q2 FY26. It posted a loss before tax and exceptional items of £485 million for the quarter, compared to a profit of £398 million a year earlier.
EBIT margin fell sharply to –8.6% from 5.1% last year. JLR also reported a loss after tax of £559 million in Q2, versus a £283 million profit in the same period last year, including £238 million in exceptional charges related to the cyber incident and voluntary redundancies.
Domestic business rebounds on GST cuts, festive demand
The company’s domestic business recovered sharply in the second quarter as volumes picked up during the quarter, driven by the impact of GST rate reductions and festive demand. The company sold 1.44 lakh units (including EVs), marking an 11% YoY growth.
Revenue from the segment rose 15.6% YoY to ₹13,000 crore, while EBITDA margins stood at 5.8%, down 40 basis points YoY, as adverse realisations and fixed costs offset the benefit of favourable volumes, improved mix, and commodity cost savings.
Looking ahead, the company said it remains confident of volume growth, supported by impactful new product interventions, including the new nameplate Sierra and the Harrier/Safari petrol powertrain.
Structural cost reductions and an improved mix are expected to act as key levers for enhancing profitability in the coming quarters.
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