Analyst Concall
JLR debt deep, won't be cleared in 3 quarters, says Tata Motors PV
This story was originally published at 21:13 IST on 5 February 2026
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--CONTEXT: Comments by Tata Motors PV mgmt in post-earnings analyst call
--Tata Motors PV: JLR orderbook at end of Q3 was higher than at end of Q2
--Tata Motors PV: Will bank on JLR brand to pull out of current issues
--Tata Motors PV: JLR's output has normalised so far in Q4
--Tata Motors PV:JLR won't get to net cash position in next 2-3 qtrs at least
--Tata Motors PV: China most challenging market for JLR right now
--Tata Motors PV: JLR plants running at capacity so far in Q4
--Tata Motors PV: Prima facie India-EU FTA won't impact co's strategy
By Anand JC and Nandini Sinha
MUMBAI – Tata Motors Passenger Vehicles Ltd. Thursday said the net debt accumulated by its UK-based subsidiary Jaguar Land Rover over the last quarter is "embedded", and the arm won't reach a net cash position over the next two to three quarters. JLR's net debt climbed to INR 394 billion as of Dec. 31, up from INR 201 billion as of Sept. 30 and INR 114 billion as of Jun. 30, primarily due to a fall in sales volume of JLR and an increase in working capital.
"Our debt has increased. It will certainly not get back to net cash over the next two or three quarters," the luxury carmaker's Chief Financial Officer Richard Molyneux told investors at a post-earnings analyst call. "Lower sales combined with recovering systems allowed us to pay overdue invoices from the cyber stoppage. And we also settled and paid most supplier claims before their December year ends, which amplified our cash burn," Molyneux said.
Tata Motors PV reported a consolidated net loss of INR 34.86 billion for the December quarter on revenues of INR 701.08 billion, with both metrics worse than analaysts estimates. The company said its performance in the reporting quarter continued to be impacted by the cyberattack at JLR, which occurred in August.
The company booked some one-time costs in the September and December quarters because of the cyber attack. Tata Motors PV will not need to do it in the March quarter, as production has largely normalised. Its plants producing the Range Rover, Range Rover Sport, and Defender models, on which the majority of JLR's operations are focused, are now operating at full capacity, and the company expects normalcy in this regard in the March quarter.
JLR said its order book is at a "decent place" as of Dec. 31, higher than it was as of Sept. 30. "We are building order intake relatively strongly, and I think the power of our brands is our biggest advantage," Molyneux said. However, he did not quantify the order book.
JLR contributed roughly 77% to Tata Motors PV's consolidated revenue in the December quarter. The luxury automaker's cars are sold across geographies, incluidng in Europe, the US, West Asia and North Africa, Europe, parts of Asia, and other regions. The company said global demand is currently challenging. During the December quarter, wholesale sales of JLR cars fell to 59,100 units, down from 104,400 units in the year-ago quarter and 66,200 units in the September quarter.
Sales of its cars fell slightly year on year in the UK and West Asia and North Africa, even as the decline in North America, Europe, China, and other overseas markets was sharper. "Combined, this picture is not a very constructive business environment for JLR to operate in," Molyneux said.
JLR operates in China through its joint venture Chery Jaguar Land Rover. China is the world's largest automotive market, where sales in the premium car segment fell 21% on year. "A slowing market and rapid capacity build out have also led to a supply-demand imbalance in the market that is driving thousands of retailers into insolvency," Molyneux said. "This is not a short-term boom-bust cycle, this is structural and permanent. JLR has until very recently weathered the storm well... but in recent months, we've suffered more severely," he said.
In July 2025, China imposed a 10% luxury tax on cars priced over 900,000 renminbi. "There is a squeeze in the luxury segment in China... we are going to rely on the power of our brands to pull through sales, accepting that in the short term that is going to mean that we get hurt a bit in China, but we will protect that market for its long-term abilities to grow," Molyneux said.
INDIA PV OPS
Despite the lull overseas, Tata Motors Passenger Vehicles' business in India boomed in the December quarter, buoyed by the cut in the goods and services tax. "Post GST 2.0, there has been a secular growth across segments," Shailesh Chandra, Managing Director and Chief Executive Officer of Tata Motors Passenger Vehicles, said.
The passenger vehicle industry grew 14% on year in January, while Tata Motors Passenger Vehicles' despatches grew 46% on year. Chandra expects the industry to grow around 14% on year in the March quarter, while the company's sales could grow at around 40%. In 2025-26 (Apr-Mar), the company expects the industry to grow 8-9% on year and its own sales to expand in mid-teens.
Asked if Tata Motors Passenger Vehicles' plans would be hampered by India's free trade agreement with the European Union, Chandra said, based on the information on the deal available currently, the company does not expect to be impacted in "any big way". "Any player who has to compete effectively in India will have to localise with whatever we are reading in terms of the duty rates, which will still remain," Chandra said.
Merely exporting cars to India will be a difficult route to success for companies there, Chandra said. "So there's no impact immediately for sure. But over a period of time, also, not localising in India will have a difficult strategy from a strategy perspective for any player," he said.
The company disclosed its December quarter earnings after the market closed. Thursday, its shares closed 0.4% lower on the National Stock Exchange at INR 374.15. End
Edited by Saji George Titus
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