Synopsis:
Tata Motors Ltd's UK-based luxury subsidiary Jaguar Land Rover reported a major IT security incident disrupting global operations. The company disclosed the issue in a regulatory filing, refraining from sharing specifics.
The automobile sector was in focus today as investors reacted to a fresh round of operational challenges for a leading automaker. Sentiment turned cautious after news surfaced of a global IT disruption affecting luxury car subsidiary Jaguar Land Rover, raising concerns over its ability to manage cybersecurity risks amid already softening volumes.
Tata Motors Ltd., with a market capitalization of Rs. 2,54,958.44 crore, opened today at Rs. 693.55. The stock came under watch as traders assessed the potential business impact of the latest IT incident disclosed by the company.
Tata Motors informed the Indian stock exchanges that its UK-based subsidiary Jaguar Land Rover Automotive Plc (JLR) is grappling with a significant IT security issue that has disrupted global operations.
The company confirmed the incident through an official filing, stating, "We are working at pace to resolve global IT issues impacting our business. We will provide an update as appropriate in due course." However, it refrained from providing additional details, noting that further clarity would emerge once JLR completes its internal assessment.
According to sources, The disruption first surfaced when a JLR dealer in the UK reported zero new car registrations on September 1, traditionally one of the busiest days for fresh vehicle registrations in the country. The timing of the issue is particularly concerning given JLR's reliance on peak-season demand.
This is not the first time the luxury automaker has faced cybersecurity challenges. In March 2025, the HELLCAT ransomware group claimed responsibility for leaking nearly 350 GB of sensitive data from JLR, including confidential corporate documents and employee records.
Earlier, in March 2023, JLR had entered into a strategic agreement with Tata Consultancy Services (TCS), appointing it as its IT partner for end-to-end services, including application development, infrastructure management, cloud migration, and cybersecurity.
Additionally, JLR has partnered with Tata Technologies under its "Digital 2024" program to accelerate transformation and with Tata Communications to modernize its digital infrastructure. Despite these efforts, the recurring nature of breaches highlights the ongoing complexity of managing IT systems across its global footprint.
JLR's first-quarter performance reflected both demand challenges and operational disruptions. Wholesale volumes stood at 87,300 units, down 10.7 percent year-on-year compared to 97,800 units in Q1FY25. Retail volumes dropped to 94,400 units, marking a 15.1 percent decline from 111,200 units a year earlier. Revenue for the quarter fell 9.2 percent year-on-year to £6.6 billion.
Profitability also came under strain, with EBIT margin slipping sharply to 4.0 percent in Q1FY26 versus 8.9 percent in Q1FY25. Profit before tax and exceptional items plunged 49.4 percent to £351 million in the quarter.
Return on capital employed (ROCE) for the twelve-month rolling period ended June 30, 2025, was reported at 16.2 percent, underscoring weakening returns on invested capital.
Looking ahead, JLR guided for an EBIT margin in the range of 5 to 7 percent for FY26, with free cash flow expected to remain close to zero. The company expects financial performance to improve year-on-year in FY27 and FY28.
Management highlighted that enterprise initiatives, excluding tariffs, will progressively contribute £1.4 billion per annum, which over time should offset risks related to tariffs, currency volatility, and exposure to the Chinese market. These measures are aimed at driving a recovery back towards a 10 percent EBIT margin in the long term.