Tata Motors Passenger Vehicles (TMPV) reported a consolidated net loss of Rs 5,451 crore from continuing operations for the September quarter (Q2 FY27), narrowing from a loss of Rs 6,368 crore in the corresponding period last year, as a recovery in Jaguar Land Rover (JLR) volumes helped offset restructuring costs and asset impairments.
Consolidated revenue from operations rose 34 percent year-on-year to Rs 96,920 crore from Rs 72,349 crore, supported by a recovery at JLR following the cyberattack-related disruption in the year-ago quarter and strong growth in the domestic passenger vehicle business.
The company incurred exceptional charges of Rs 6,738 crore during the quarter, primarily comprising employee separation costs and asset impairments. On a reported basis, the company posted a consolidated net loss attributable to shareholders of Rs 5,531 crore, compared with a profit of Rs 76,170 crore a year earlier. However, the year-ago figure included a substantial exceptional gain arising from the demerger of its commercial vehicle business, making the reported profit figures not directly comparable.
The consolidated earnings before interest, tax, depreciation and amortisation (Ebitda) margin stood at 6.2 percent, an improvement of 630 basis points year-on-year, largely reflecting recovery from the cyber incident at JLR in the corresponding period last year. Sequentially, margins were affected by an adverse product mix and persistent commodity cost pressures.
TMPV shares fell 3.31 percent to close at Rs 287.40 on Friday.
JLR reported revenue of £5.89 billion during the quarter, up 20.3 percent year-on-year, as wholesale volumes recovered in the UK and overseas markets. However, lower volumes in China and the Middle East, along with an adverse market and model mix, continued to affect profitability. JLR’s profit before tax and exceptional items stood at £6 million, against a loss of £485 million a year earlier. Its Ebitda margin improved to 6.6 percent.
The British luxury-car maker recognised exceptional charges of £530 million during the quarter towards restructuring activities, including employee separation costs and asset impairments.
JLR management said £295 million of the exceptional charges related to its voluntary redundancy programme targeting around 4,000 employees. Around 3,000 employees had already signed up, with the majority expected to leave on November 30. The remaining charges largely comprised asset write-downs.
The management said China remained a challenging market and the company could not be certain that the decline in sales had bottomed out. JLR was reassessing its approach to the Chinese market while maintaining disciplined dealer inventories and avoiding excessive discounting.
Amid continuing geopolitical uncertainties, inflationary pressures and market challenges, JLR revised its full-year guidance to an adjusted Ebit margin of 2–3 percent and free cash outflow of around £1.25 billion.
PB Balaji, chief executive officer of JLR, said the company delivered positive operating profits in the second quarter and first half despite global challenges.
“With the proposed arrival of Range Rover GT and a new electric Defender product in the new year, we are entering a phase of exciting product launches,” Balaji said.
He added that the company’s growth plans for the US and its Enterprise Missions cost-reduction programme, aimed at reducing breakeven volumes to 300,000 units, positioned it for consistent, cash-generating growth.
The domestic passenger vehicle business, meanwhile, recorded its highest-ever quarterly revenue of Rs 20,423 crore, growing 50.9 percent year-on-year. However, its Ebitda margin contracted by 180 basis points to 4 percent, while its Ebit margin remained negative at 0.3 percent.
Shailesh Chandra, MD and CEO of TMPV said the company had been able to offset only around 40 percent of the impact of rising commodity costs through calibrated price increases and cost reductions, absorbing the remaining pressure on its profitability. Steel, rubber and copper prices were expected to remain elevated in the December quarter, although some moderation was visible in precious metals.
The company is also considering a larger price increase in the March quarter. “In Q4 we might go for slightly higher price increase as compared to what we have been taking,” Chandra said during the earnings call. He expects profitability to remain around current levels in Q3 before improving in Q4 through pricing and cost-reduction measures.
Chandra said the company recorded quarterly sales of over 200,000 units, with volumes growing 40 percent year-on-year. Electric vehicle sales rose 90 percent during the quarter.
He clarified that the company was not sacrificing profitability to gain market share. With demand currently exceeding supply, market-share gains were a consequence of meeting customer demand rather than aggressive discounting. Chandra also expects India’s passenger vehicle industry to grow around 12–13 percent in FY27, with growth moderating to approximately 5 percent in the second half because of a higher base. He said discounts had been declining over the past two to three quarters and did not foresee a return to widespread discounting in the near term.
The domestic passenger vehicle business generated positive free cash flow of Rs 825 crore during the quarter and had a net cash position of Rs 7,900 crore as of September 30. This contrasted with the group’s consolidated net debt of Rs 50,800 crore at the end of the quarter.
Dhiman Gupta, chief financial officer of TMPV, said the domestic business continued to build on its growth momentum, while JLR delivered resilient volumes despite market-specific challenges and the wind-down of earlier Jaguar models.”However, adverse mix and persistent commodity pressures weighed on margins,” Gupta said, adding that the company remained focused on new launches, cost reductions and improving cash generation.
The group’s consolidated free cash outflow stood at Rs 6,300 crore during the quarter. According to the consolidated balance sheet, cash and cash equivalents declined to Rs 10,925 crore at the end of September from Rs 22,880 crore at the end of March 2026. Total borrowings stood at Rs 79,493 crore, compared with Rs 69,953 crore at the end of March.
JLR said it would focus on building sales momentum through its new electric vehicle launches, while implementing its cost-saving programme aimed at delivering £1.7 billion in savings over the next two years.