Tata Motors Passenger Vehicles saw its shares drop sharply by up to 7.2 percent on November 17, 2025, hitting a seven-month low of 363 rupees per share on Indian stock exchanges. The plunge came after the company reported disappointing second-quarter results for the period ending September 30, 2025, mainly due to production disruptions at its luxury unit Jaguar Land Rover from a major cyber incident.
Stock Market Plunge and Immediate Impact
Investors reacted quickly to the weak earnings report, sending Tata Motors PV shares tumbling in early trading on the Bombay Stock Exchange and National Stock Exchange. The stock opened lower and extended losses throughout the morning session, reflecting broader concerns over the company’s performance.
This drop erased recent gains and brought the share price to levels not seen since early 2025. Trading volume spiked as sellers dominated, with over 15 million shares changing hands by midday. Analysts point to the unexpected severity of the cyberattack’s effects as a key trigger for the sell-off.
The market’s response highlights ongoing volatility in the auto sector, where global supply chain issues and economic pressures continue to weigh on major players.
Key Financial Results for Q2
Tata Motors PV announced a massive jump in net profit to 76,170 crore rupees for the July to September quarter, up 2110 percent year-over-year from 3,521 crore rupees. However, this surge was largely driven by a one-time notional gain of 82,616 crore rupees from the demerger of its operations.
Excluding that exceptional item, the company posted a loss of 6,368 crore rupees, underscoring underlying operational challenges. Revenue for the quarter fell 14 percent to 72,349 crore rupees compared to the previous year.
Here is a quick breakdown of the main financial figures:
| Metric | Q2 FY26 | Q2 FY25 | Change |
|---|---|---|---|
| Net Profit (including one-time gain) | 76,170 crore rupees | 3,521 crore rupees | +2110% |
| Net Profit (excluding gain) | -6,368 crore rupees | N/A | N/A |
| Revenue | 72,349 crore rupees | 83,656 crore rupees | -14% |
| JLR Revenue | 4.9 billion pounds | 6.5 billion pounds | -24.3% |
| EBIT Margin | -8.6% | 5.1% | -1360 basis points |
These numbers show how the cyber incident dragged down overall performance, despite some resilience in domestic passenger vehicle sales.
Cyber Incident Hits Jaguar Land Rover Hard
Jaguar Land Rover, which accounts for about 70 percent of Tata Motors PV revenue, faced significant setbacks from a cyberattack that halted production at its UK plants. The breach disrupted supply chains and led to weeks of downtime, costing an estimated 50 million pounds in lost revenue per week.
Company officials stated that the incident affected all major operating metrics, resulting in a negative EBIT margin of 8.6 percent for the quarter. Production losses included around 30,000 vehicles that could not be built, adding to pressures from soft demand in China and ongoing chip shortages.
Efforts to recover are underway, with Tata Motors Group CFO noting a commitment to emerge stronger. This event joins a string of recent cyberattacks on global firms, raising questions about cybersecurity in the automotive industry.
The fallout has sparked discussions on the need for better digital protections, especially as electric and connected vehicles become more common.
Revised Guidance and Outlook for FY26
In response to these challenges, Tata Motors PV lowered its fiscal 2026 margin guidance for Jaguar Land Rover. The company now expects EBIT margins to be lower than previously forecasted, citing the cyber incident, weak China sales, and supply constraints.
Management anticipates a recovery in the second half of the fiscal year, driven by new model launches like the Sierra and potential price increases starting January 2026. They project double-digit growth in the domestic passenger vehicle market for the latter half, leading to mid-single-digit overall growth for FY26.
However, analysts warn that competitive pressures and commodity inflation could keep profitability muted in the near term.
Expert Views on the Performance
Industry experts have been vocal about the results, describing them as one of the worst in recent times for Tata Motors PV. Many highlight the cyber incident as a major blow but also note broader issues like US tariffs affecting JLR demand.
Here are some key takeaways from analyst reports:
- One brokerage firm revised its target price downward, citing risks to volume growth and margin recovery.
- Another expert emphasized the need for stronger cybersecurity measures to prevent future disruptions.
- Positive notes include optimism around domestic EV sales and upcoming launches that could boost market share.
These opinions reflect a mix of caution and hope, with most agreeing that quick resolution of JLR issues is crucial for stock recovery.
Domestic Resilience Amid Global Challenges
While JLR struggled, Tata Motors PV’s domestic operations showed some strength. Passenger vehicle sales held up better than expected, supported by demand for electric models and a positive market sentiment.
The company expects the Indian auto industry to grow in the coming quarters, helped by festive season sales and economic recovery. Recent events, such as government incentives for EVs, could further aid this segment.
Looking ahead, Tata Motors PV plans to focus on innovation and cost controls to navigate these headwinds.
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