**Market Brief: Tata Motors Q3 FY26 Performance** **Executive Summary: Domestic Resilience Meets Global Headwinds** Tata Motors’ Q3 FY26 narrative is defined by a sharp divergence between its soaring Indian operations and a crisis-hit Jaguar Land Rover (JLR) division. While the domestic Passenger Vehicle (PV) and Commercial Vehicle (CV) segments delivered record-breaking numbers, consolidated earnings remain under significant pressure due to a massive cyber-attack that crippled JLR production. **JLR Crisis: The £1.9 Billion Cyber Blow** The headline drag on performance is the severe operational disruption at Jaguar Land Rover. Following a major cyber-attack, JLR production was halted until mid-November, resulting in a staggering **43.3% year-on-year drop** in wholesale volumes to **59,200 units**. * **Retail Sales:** Declined **25.1%** to 79,600 units. * **Financial Impact:** Analysts estimate the total economic cost of the breach at approximately **£1.9 billion**. * **Regional Fallout:** North American volumes plummeted over **64%**, aggravated by incremental tariff pressures. **Domestic Strength: Record Highs in India** In stark contrast, the India business fired on all cylinders, cushioning the group-level impact. * **Passenger Vehicles:** Q3 sales surged **22.3% YoY** to a record **171,013 units**. * **EV Leadership:** Electric vehicle adoption accelerated aggressively, with sales growing **49.5%** to **24,103 units**, solidifying Tata’s market dominance. * **Commercial Vehicles:** Revenue grew **16%**, supported by a **20%** jump in wholesale volumes. The segment achieved a double-digit EBITDA margin of **12.7%**, driven by disciplined pricing and operating leverage. **Financial Realities: Margins & Profitability** Despite the revenue uplift in India, the bottom line faces stress. The Commercial Vehicle business reported a **48% decline** in net profit to **₹705 crore**, primarily due to **₹1,600 crore** in exceptional items (including demerger costs and labor code adjustments). * **Consolidated Outlook:** Most brokerages have priced in a "washout" quarter for the consolidated entity, with JLR's negative operating leverage expected to drag the group into a potential net loss or significantly reduced profit for the period. **Market Reaction & Investor Sentiment** The stock has seen volatility, correcting approximately **4%** immediately following the release of JLR’s provisional volume data. However, it has since stabilized around the **₹375** level, as the market weighs the temporary nature of the cyber incident against the structural strength of the India business. **Key Watchlist for Investors** * **Recovery Timeline:** Speed of JLR’s production ramp-up in Q4. * **New Launches:** Performance of the petrol Harrier/Safari and the newly launched Sierra. * **Demerger Progress:** Updates on the separation of the CV and PV entities. *** **Next Step:**