Tata Motors PV Shares Tumble 6% as JLR Losses, Cyberattack Impact Shake Investor Confidence

Tata Motors Passenger Vehicles (TMPV) shares slipped sharply on Monday, falling nearly 6% in morning trade after the company announced weaker-than-expected Q2 FY26 results. Despite this being TMPV’s first quarterly report as a standalone company, investor sentiment soured due to the severe downturn at Jaguar Land Rover (JLR), reduced margin guidance, and the lingering impact of a major cyberattack that disrupted production.

The stock opened at ₹369, down 5.7% from Friday’s closing price of ₹391.20. While the domestic passenger vehicle segment showed moderate growth, concerns surrounding JLR’s performance overshadowed the overall results.

JLR Reports Heavy Losses

JLR posted a GBP 485-million loss before tax, with revenue plunging 24.3% year-on-year to GBP 24.9 billion. The September cyberattack forced the automaker to suspend operations for several days, pushing margins into negative territory.

As a result, JLR slashed its full-year EBIT margin guidance to 0–2%, significantly lower than the earlier estimate of 5–7%, and warned of a free cash outflow of GBP 2.2–2.5 billion.

PV Business Also Under Stress

After excluding the one-time gain from the CV demerger, TMPV would have posted a ₹6,370-crore loss, compared to a ₹3,056-crore profit last year. The standalone PV business reported an adjusted loss of ₹237 crore, despite revenue rising 6% to ₹12,751 crore. EBITDA fell sharply from ₹717 crore to ₹303 crore, pulling margins down to 2.4%.

Brokerages Turn Cautious

The mixed performance triggered concerns among global brokerages:

• Jefferies retained an Underperform rating with a ₹300 target, cautioning that cyberattack disruptions could spill into Q3. It flagged challenges such as heavy discounting, China tax changes, tough EV transition, and intense competition.
• Goldman Sachs maintained a Neutral stance with a ₹365 target, noting that JLR’s EBITDA missed expectations significantly. Management now forecasts 30,000 units of lost production in Q3—higher than the 20,000 units hit in Q2.
• CLSA, however, kept an Outperform rating with a higher ₹450 target, pointing out stable India PV margins at 5.8% and noting that GST reductions on small SUVs could support domestic demand.

Market Reaction

The combination of JLR’s steep losses, margin cuts, and cyberattack impact created a sharp negative overhang on TMPV shares. While the India PV division remains stable, analysts believe it may not be sufficient to offset the drag from JLR’s weak global outlook, leading to the significant sell-off in the stock.