Breaking News
Tata Motors reported a sharp downturn in its September quarter (Q2 FY26) performance after a crippling cyberattack on Jaguar Land Rover (JLR) halted production, froze key systems and triggered a direct financial hit of ₹2,288 crore. The disruption cascaded through the group’s global operations, dragging consolidated profitability deep into the red.
The company’s filings show consolidated revenue fell 13.5% year-on-year to ₹72,349 crore, with Tata Motors directly attributing the slump to the JLR outage. Consolidated EBIT deteriorated to –₹4,900 crore, a swing of ₹8,800 crore from the previous year as production stoppages and delayed wholesales throttled volumes and cash flow.
JLR faced the most severe blow. Quarterly revenue dropped 24.3% to £4.9 billion (approximately ₹57,000 crore), and EBIT margins collapsed to –8.6%, down from 5.1% a year ago. Loss before tax and exceptional items stood at £485 million, reflecting the operational paralysis during the September shutdown.
The automaker disclosed that the attack resulted in £196 million (₹2,288 crore) in direct cyber incident–related costs, booked as part of exceptional items for the quarter. These covered system restoration, recovery, supplier support and operational resets across global facilities.
The impact extended far beyond the direct charge. JLR recorded a free cash outflow of £791 million for the quarter, driven by halted wholesales and disrupted logistics. At the group level, automotive free cash flow deteriorated to –₹8,300 crore, underscoring the severity of the operational shock.
In India, the passenger vehicle business continued to show resilience. Standalone PV revenue rose 15.6% to ₹13,529 crore, supported by festive demand and GST reductions. However, EBIT margins remained thin at 0.2%, as higher fixed costs offset volume gains.
The standalone bottom line was heavily influenced by an ₹82,318-crore one-time gain from the demerger of the commercial vehicle business—an accounting impact that boosted reported profit but had no bearing on operational performance.
Tata Motors said JLR has “recovered operations at pace,” with production returning to normal levels, but it cut its full-year outlook. JLR now expects an EBIT margin of just 0–2% in FY26 and a sizeable free cash outflow of £2.2–£2.5 billion, reflecting continued stress from the cyberattack and US tariffs.
Calling the quarter “a difficult period,” Group CFO PB Balaji said the company is prioritising production stabilisation, liquidity protection and supply-chain strengthening in the second half.
The quarter’s results highlight how a single cyber breach—costing ₹2,288 crore in direct charges—can ripple across revenue, profitability and cash flows for a global manufacturer, leaving a deep imprint on earnings even after operations return to normal.
The company’s filings show consolidated revenue fell 13.5% year-on-year to ₹72,349 crore, with Tata Motors directly attributing the slump to the JLR outage. Consolidated EBIT deteriorated to –₹4,900 crore, a swing of ₹8,800 crore from the previous year as production stoppages and delayed wholesales throttled volumes and cash flow.
JLR faced the most severe blow. Quarterly revenue dropped 24.3% to £4.9 billion (approximately ₹57,000 crore), and EBIT margins collapsed to –8.6%, down from 5.1% a year ago. Loss before tax and exceptional items stood at £485 million, reflecting the operational paralysis during the September shutdown.
The automaker disclosed that the attack resulted in £196 million (₹2,288 crore) in direct cyber incident–related costs, booked as part of exceptional items for the quarter. These covered system restoration, recovery, supplier support and operational resets across global facilities.
The impact extended far beyond the direct charge. JLR recorded a free cash outflow of £791 million for the quarter, driven by halted wholesales and disrupted logistics. At the group level, automotive free cash flow deteriorated to –₹8,300 crore, underscoring the severity of the operational shock.
In India, the passenger vehicle business continued to show resilience. Standalone PV revenue rose 15.6% to ₹13,529 crore, supported by festive demand and GST reductions. However, EBIT margins remained thin at 0.2%, as higher fixed costs offset volume gains.
The standalone bottom line was heavily influenced by an ₹82,318-crore one-time gain from the demerger of the commercial vehicle business—an accounting impact that boosted reported profit but had no bearing on operational performance.
Tata Motors said JLR has “recovered operations at pace,” with production returning to normal levels, but it cut its full-year outlook. JLR now expects an EBIT margin of just 0–2% in FY26 and a sizeable free cash outflow of £2.2–£2.5 billion, reflecting continued stress from the cyberattack and US tariffs.
Calling the quarter “a difficult period,” Group CFO PB Balaji said the company is prioritising production stabilisation, liquidity protection and supply-chain strengthening in the second half.
The quarter’s results highlight how a single cyber breach—costing ₹2,288 crore in direct charges—can ripple across revenue, profitability and cash flows for a global manufacturer, leaving a deep imprint on earnings even after operations return to normal.
See What’s Next in Tech With the Fast Forward Newsletter
Tweets From @varindiamag
Nothing to see here - yet
When they Tweet, their Tweets will show up here.
