Tata Motors shares decline 3.5% after JLR Q3 performance; Check the sales

Synopsis: Tata Motors Passenger Vehicles Limited has informed the stock exchanges that its wholly owned subsidiary, Jaguar Land Rover Automotive plc (JLR), reported a weak sales performance in Q3 FY26, with wholesale volumes declining 43.3 percent year-on-year to 59,200 units for the quarter ended December 31, 2025. 

The shares of this automobile company is majorly engaged in manufacturing and selling of passenger vehicles which includes SUV’s, Hatchback, Sedan etc., fell upto 3.5 percent after reporting weak Q3FY26 sales.

With the market capitalization of Rs. 1,34,847 Crore, the shares of Tata Motors Passenger Vehicles (TMPV) have touched an intraday low of Rs. 360 per share, falling nearly 3.5 percent from its previous day close of Rs. 373.55 per share and is trading at a P/E of 9.97 whereas industry P/E stands at 35

Why is TMPV down by 3.5 percent? 

Overall impact

In Q3 FY26, JLR’s sales were hit mainly because of a cyber incident that disrupted production. Wholesale sales fell to 59,200 units, a sharp 43.3% drop compared to Q3 FY25, while retail sales declined to 79,600 units, down 25.1% year-on-year. Production came back to normal only by mid-November, and the time taken to move vehicles globally after that further reduced sales during the quarter.

Reasons behind the decline

The cyber incident caused production stoppages early in the quarter, which directly affected vehicle availability. Along with this, JLR continued the planned phase-out of older Jaguar models ahead of the new Jaguar launch, which also reduced volumes as expected. Higher US tariffs additionally affected exports to the US, adding pressure on overall sales.

Wholesale sales by region

Wholesale volumes were down in all regions compared to last year. North America saw the steepest fall at 64.4%, followed by Europe at 47.6% and China at 46.0%. Overseas markets declined by 50.4%, while the UK was down only 0.9% and MENA fell by 8.5%, making them relatively more stable. Premium models remained important, with Range Rover, Range Rover Sport, and Defender accounting for 74.3% of total wholesale volumes, higher than last year.

Retail sales by region

Retail sales also declined across all markets. North America dropped by 37.7%, while Europe fell 26.9% and China declined 18.4%. The UK saw a 13.3% drop, MENA fell 18.7%, and Overseas markets declined 14.1%. These numbers show that retail sales were affected across regions.  Retail volumes for the financial year to date were 259 ,400 , down 19. 1% YoY. 

About the Company and Financials: 

Tata Motors Passenger Vehicles majorly engaged in manufacturing and selling of passenger vehicles which includes SUV’s, Hatchback, Sedan etc. and owns premium car brands like Jaguar Land Rover. 42 percent of the cars sold are petrol based whereas Diesel, EV, CNG contributes 13 percent, 17 percent and 28 percent respectively. The company has demerged recently from Tata Motors and formed Tata motors passenger vehicle limited. 

Year on Year analysis: Revenue from operations has decreased  from Rs. 83,656 Crores to 72,349 Crores, down 13.5 percent. Operating profit  came down from Rs. 9,914 Crores to operating loss of Rs. 1404 Crores and net profit has increased from Rs. 3521 Crores to Rs. 76248, raised by 2065 percent and majorly due to sale of exceptional items 

Quarter on Quarter analysis:   Revenue from operations has decreased  from Rs. 87677 Crores to 72,349 Crores, down 17 percent. Operating profit came down  from Rs. 8162 Crores to operating loss of Rs.1404 Crores and net profit has increased from Rs. 4003 Crores to Rs. 76248 Crores , raised by 1804  percent and majorly due to sale of exceptional items 

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