Mumbai: Tata Motors Passenger Vehicles swung to a consolidated net loss of Rs 5,531 crore in the July–September quarter of FY27, against a profit of Rs 76,170 crore a year earlier. The company reported an exceptional charge of Rs 6,738 crore in its stock exchange filing.
Revenue climbs
Consolidated revenue rose 34 percent to Rs 96,920 crore from Rs 72,349 crore in the corresponding quarter last year. The rise in revenue came as the company’s domestic business maintained momentum, while its British luxury carmaker Jaguar Land Rover (JLR) continued to restructure.
Chief Financial Officer Dhiman Gupta said JLR’s volumes held up despite challenges in individual markets and the phase-out of previous Jaguar models. He said an unfavourable sales mix and persistent commodity cost pressures weighed on margins during the quarter.
JLR recovery
JLR is still recovering from a cyberattack that disrupted production and sales last year. The restructuring has added to pressure on the group’s earnings as the luxury carmaker works to restore margins and improve cash generation.
The Rs 6,738 crore exceptional charge was the main factor behind the quarterly loss, according to the filing. It exceeded the reported net loss by Rs 1,207 crore.
Management priorities
Gupta said the company would focus on new vehicle launches to drive growth, accelerate cost reductions and improve cash generation. He described both the domestic business and JLR as fundamentally strong and said those priorities would guide the company over the medium term.
The finance chief pointed to continued momentum in the domestic passenger vehicle business during the quarter. At JLR, the wind-down of previous Jaguar models came alongside market-specific challenges, even as volumes remained resilient, he said.
Shares close lower
Tata Motors Passenger Vehicles shares closed 3.5 percent lower at Rs 287 apiece on November 13. The company released its quarterly results after market hours, so the closing price preceded the disclosure of the loss, the exceptional charge and the rise in consolidated revenue.
