💰 Financial Performance

Revenue Growth by Segment

Domestic Passenger Vehicle (PV) revenue grew 15% YoY in Q2 FY26. Conversely, Jaguar Land Rover (JLR) revenue declined 24% YoY in Q2 FY26 due to a cyber incident that disrupted production and wholesales. Proforma consolidated revenue for FY25 (PV + JLR) stood at INR 362,665 Cr.

Geographic Revenue Split

The business is split between Domestic India (PV and EV) and Global markets (JLR). JLR wholesales reached 66,000 units in Q2 FY26, a 24% YoY reduction. Domestic PV market share was ~12.5% in H1 FY26.

Profitability Margins

Consolidated PAT margin was 5.4% in FY25, down from 7.47% in FY24. Domestic PV operating margins declined by 100 bps to 5.0% in H1 FY26 due to adverse realizations. JLR reported a negative EBIT margin of 8.6% in Q2 FY26 due to high operating leverage and production losses.

EBITDA Margin

Domestic PV standalone OPBDIT/OI was 6.0% for FY25, down from 7.0% in FY24. JLR's full-year FY26 EBIT margin is guided to be between 0% and 2% positive, reflecting a recovery from the Q2 cyber disruption.

Capital Expenditure

Domestic PV investment spend was INR 1,300 Cr in Q2 FY26. JLR's total investment spending in Q2 FY26 was £828 million (approx. INR 8,800 Cr), with £629 million dedicated to engineering costs to support the transition to electric platforms.

Credit Rating & Borrowing

CRISIL reaffirmed 'CRISIL AA+/Stable/CRISIL A1+' ratings. Interest coverage ratio improved significantly to 15.3x in FY25 from 7.99x in FY24, indicating a robust financial risk profile despite the CV demerger.

⚙️ Operational Drivers

Raw Materials

Specific materials include steel, aluminum, copper, and lithium-ion cells for EV batteries. While specific cost percentages per material are not disclosed, the company has dedicated teams for 'material cost reduction' to protect margins.

Import Sources

Not specifically disclosed in the provided documents, though JLR operates plants in the UK, Slovakia (Nitra), and China (CJLR JV).

Key Suppliers

FIAPL (Joint Operation) is a key partner for domestic manufacturing. CJLR is the joint venture partner in China.

Capacity Expansion

JLR plants in Wolverhampton, Nitra, and Solihull are currently operating at capacity levels following the October 2025 restart. Domestic PV is expanding its network and customer service footprint to sustain growth.

Raw Material Costs

Raw material costs are managed through 'high-value missions' for cost reduction. Adverse realizations impacted domestic PV margins by 100 bps in H1 FY26.

Manufacturing Efficiency

JLR production was halted in September 2025 but resumed in phases starting October 8, 2025. Domestic PV is focusing on 'structural actions' to strengthen the network.

Logistics & Distribution

Distribution is supported by a network of 500+ retailers for JLR, who are undergoing programs to leverage high-end 'Halo' and 'Bespoke' products.

📈 Strategic Growth

Expected Growth Rate

15%

Growth Strategy

Growth will be driven by the 'mainstreaming' of EVs, with new launches like Harrier.ev and Sierra.ev. JLR is modernizing the Jaguar brand to be all-electric by 2026 and focusing on high-margin Land Rover special editions.

Products & Services

Passenger vehicles, SUVs, and luxury cars including internal combustion engine (ICE), CNG, and Electric Vehicles (EV).

Brand Portfolio

Tata Motors, Jaguar, Land Rover, Range Rover, Defender, Discovery, Nexon.ev, Harrier.ev, Curvv, Sierra.ev.

New Products/Services

Launch of Nexon.ev, Harrier.ev, and Curvv. Harrier.ev drove quarterly EV offtakes to 24,000 units. Sierra.ev is expected to further contribute to the 17% EV penetration rate.

Market Expansion

Focus on strengthening the domestic network and expanding the EV portfolio to maintain a leadership position in the Indian EV segment (currently ~42% market share).

Market Share & Ranking

Domestic PV market share is ~12.5% (Ranked among top players). EV market share is ~42% as of Q2 FY26.

Strategic Alliances

Joint Venture with Chery (CJLR) in China and Joint Operation with FIAPL in India for manufacturing.

🌍 External Factors

Industry Trends

The industry is shifting toward electrification. TMPV's EV penetration rose from 12% to 17% YoY. Jaguar will be 100% electric by 2026.

Competitive Landscape

Intense competition in the global luxury segment (JLR) and rising competition in the domestic EV space from new entrants.

Competitive Moat

Moat is built on JLR's strong legacy in the global luxury market and TMPV's early-mover advantage in the Indian EV space. Sustainability is supported by the Tata Group's financial flexibility.

Macro Economic Sensitivity

The domestic PV business is subject to inherent cyclicality. JLR is sensitive to global economic conditions affecting luxury demand.

Consumer Behavior

Shift toward SUVs and EVs; CNG and EV now account for 45% of the domestic portfolio mix.

Geopolitical Risks

Potential impacts from trade tariffs and changes in government regulations regarding EV subsidies (PLI scheme).

⚖️ Regulatory & Governance

Industry Regulations

PLI (Production Linked Incentive) scheme eligibility: 30% of Q2 EV volumes qualified; Nexon.ev qualification in Q3 will increase this to ~55%.

Environmental Compliance

Targeting Net Zero GHG emissions by 2040 for PV business. Portfolio mix keeps CAFE (Corporate Average Fuel Economy) scores well below regulatory thresholds.

Taxation Policy Impact

JLR reported a cash tax of £93 million in Q2 FY26. Domestic PV cash tax was INR 28 Cr in Q2 FY26.

⚠️ Risk Analysis

Key Uncertainties

Cyber security risks (high impact), volatility in EV demand, and capital-intensive nature of the luxury auto business.

Geographic Concentration Risk

JLR has significant exposure to the UK, Europe, and China. Domestic PV is concentrated in the Indian market.

Third Party Dependencies

Dependency on third-party agencies for business valuation (INR 94,000 Cr for CV demerger) and joint venture partners like Chery.

Technology Obsolescence Risk

Risk of falling behind in the rapid transition to EVs, mitigated by the 'Jaguar all-electric by 2026' strategy.

Credit & Counterparty Risk

Strong financial flexibility due to Tata Group support; JLR maintains a net cash position.