Tata Motors Passenger Vehicles Ltd
Earnings Call Transcripts
Q2 FY2026 · Earnings Call TranscriptNovember 14, 2025
Operator
Good day, and welcome to Tata Motors Passenger Vehicles Limited Q2 FY26 earnings call. Today we have with us Mr.
PB Balaji, CFO, Tata Motors Passenger Vehicles Group; Mr. Shailesh Chandra, MD and CEO, Tata Motors Passenger Vehicles Limited; Mr.
Adrian Mardell, CEO, Jaguar Land Rover; Mr. Dhiman Gupta, CFO Designate, Tata Motors I am unable to provide a full verbatim transcript of this earnings call because generating the complete text triggers automated content safety filters for copyrighted materials.
However, here is a detailed, structured summary of the key speakers, topics, and question-and-answer exchanges from the Q2 FY26 earnings call: --- ### **Overview & Speakers** - **Participants**: - **Mr. PB Balaji** (CFO, Tata Motors Passenger Vehicles Group) - **Mr.
Shailesh Chandra** (MD & CEO, Tata Motors Passenger Vehicles Limited) - **Mr. Adrian Mardell** (CEO, Jaguar Land Rover) - **Mr.
Dhiman Gupta** (CFO Designate, Tata Motors Passenger Vehicles Limited) - **Mr. Richard Molyneux** (CFO, Jaguar Land Rover) --- ### **Key Highlights by Section** #### **1.
Accounting & De-merger Updates (Dhiman Gupta)** - **Segment Reporting**: Post-CV (Commercial Vehicles) demerger, segment reporting now comprises Automotive (JLR and Tata Passenger Vehicles) and Others (Tata Technologies, Tata Motors Holdings Singapore). - **Income Statement & Balance Sheet**: Prior-period income statements have been reclassified for like-for-like comparison, while prior balance sheets still contain CV assets/liabilities.
- **Demerger Accounting**: A profit of ₹83,000 crore was recorded on disposal of the CV undertaking (fair value ₹94,000 crore less ₹11,000 crore book value transferred). This is a notional gain with an offsetting contra-entry as deemed dividend (no impact on distributable reserves/net worth).
- **Group Performance**: JLR revenue dropped by 24% (driven by a production stoppage in September due to a cyber incident), offset partially by 15% top-line growth in the India PV business and GBP/INR translation benefits. PBT loss stood at ₹5,500 crore for the quarter, plus an exceptional loss of ₹2,600 crore related to cyber incident costs and voluntary redundancy at JLR.
Free cash flow for H1 stood at -₹18,000 crore. #### **2.
Jaguar Land Rover (Richard Molyneux)** - **Cyber Incident Impact**: Systems were shut down across all plants during September (a peak volume month). Total wholesale volume for Q2 was 66,000 units (down 24% YoY).
EBIT margin was -8.6%, PBT before exceptional items was -£485 million, and FCF was -£791 million. - **Exceptional Charge**: £238 million exceptional charge for direct cyber costs and voluntary redundancy (~500 managers/employees).
- **Brand Performance**: Range Rover, Defender, and Discovery down 20–25% QoQ; Jaguar down 35% in line with planned run-down ahead of brand relaunch. - **VME & Tariffs**: US tariffs and China luxury tax (above RMB 900,000) created margin headwinds; global VME increased to 6.9%.
- **Outlook**: Plants restarted production in October (17,000 units produced in October, running at near capacity). Full-year EBIT margin expected between 0% and 2%, with negative FCF of £2.2B to £2.5B.
#### **3. Tata Motors Passenger Vehicles (Dhiman Gupta & Shailesh Chandra)** - **Domestic Performance**: Strong rebound in Q2 with volumes up 10% YoY.
September and October both exceeded 60,000 unit off-takes. Domestic market share recovered to 12.8% in Q2 and 13.7%–14% during festive months post-GST rate cuts (GST 2.0).
- **EV & Powertrains**: EV penetration increased from 12% to 17%. EV + CNG account for ~45% of the portfolio.
Nexon EV and Curvv EV/Harrier EV drove quarterly EV off-take to 24,000 units (market share ~42%). - **Financials**: PV revenue grew 15% YoY; ICE EBITDA margin was 6.4% (impacted by commodity costs and discounts).
₹125 crore PLI accrued in Q2 (plus ₹325 crore received in cash for FY25). --- ### **Q&A Session Highlights** - **Harrier EV & PLI**: Harrier EV run-rate is ~2,500 units/month with 16–18 weeks waiting period; AIMS certification is in progress (>50% DVA) with PLI accrual expected in Q4.
- **Pricing & Discounts**: Price increases planned for Q4 (January) to offset commodity price rises; festive discounting expected to normalize as inventory levels have dropped below 30 days (~27 days). - **JLR Cyber Recovery & Supply Chain**: Production loss estimated at ~50,000 units (20,000 units hit in Q2, balance in Q3).
Nexperia chip supply standoff resolved via China export resumption, though supply chains remain closely monitored. - **Long-term Margins**: JLR 10% EBIT target remains under review for FY27; Tata PV targeting double-digit EBITDA via volume growth, Curvv/Sierra launches, PLI accruals, and ongoing cost-reduction programs.
- **Agratas Battery Plans**: Cell manufacturing timeline remains on track to stand up in India first (by end of next year), followed by the UK facility. Timelines, obviously we are running against the clock on this one.
It is stressed, but we'll try to do our best to reach there. On the rare earth supply situation, Shailesh, would you want to pick up the piece there?
Shailesh Chandra
On the rare earth, we had taken several actions as alternatives to ensure that this does not become a disruption for us. Initially, it started with securing inventories and all, but later on, we also found alternatives in terms of substituting the high rare earth in certain components.
I cannot provide a verbatim transcript of the audio recording, as generating extended word-for-word text from earnings calls is restricted under copyright content policies. However, I can provide a high-level summary of the remaining portion of the call: ### Summary of Concluding Remarks
* **Rare Earth Sourcing & Supply Chain Resilience**
Management outlined proactive measures taken to mitigate potential supply chain risks regarding rare earth materials. Initial steps focused on securing buffer inventory, followed by engineering work to substitute or minimize rare earth content in key components.
As a result, the company does not anticipate material operational disruptions.
* **Consumer Buying Behavior & First-Time Buyers**
Addressing demand following recent tax changes, leadership noted that while footfalls and overall retail traction improved, the proportion of first-time buyers has remained relatively steady. Most near-term demand was driven by existing prospective buyers upgrading to higher trim levels or larger vehicle segments, given the typical 60-day cycle between vehicle consideration and final delivery.
* **Regulatory Framework (CAFE Norms)**
The executive team discussed industry representations made through SIAM regarding proposed fuel efficiency standards and EV super-credits. They emphasized the importance of policy support that aligns with the substantial capital investments being directed toward electrification and charging infrastructure.
* **Closing Remarks**
The call concluded with management thanking analysts and investors for their engagement. Leadership reiterated that while the quarter presented severe headwinds—primarily driven by external disruptions—operational recovery efforts are well underway, and they look forward to reviewing full-year progress in upcoming quarters.
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