Synopsis:
Tata Motors is under scrutiny after a cyberattack on its subsidiary Jaguar Land Rover (JLR) disrupted operations and forced a production halt, potentially causing losses of up to €2 billion—exceeding JLR’s FY25 profit.
The shares of one of the Tata Group company, specializing in the manufacturing of automobiles, offering a wide range of passenger vehicles (cars, utility vehicles) and commercial vehicles (pick-ups, trucks, buses), fell by upto 4 percent, indicating a big hit to its unit Jaguar Land Rover due to the ongoing cyberattack issue.
With a market capitalization of Rs. 2,43,508.82 crores on Thursday, the shares of Tata Motors Ltd declined by upto 4 percent, making a low of Rs. 655.30 per share compared to its previous closing price of Rs. 682.75 per share.
What Happened
Tata Motors Ltd, a major automobile manufacturer offering a wide range of passenger and commercial vehicles, is currently in focus following a report by the Financial Times highlighting a significant setback at its subsidiary Jaguar Land Rover (JLR) due to a recent cyberattack that disrupted its operations and forced it to halt production.
According to the report, JLR could suffer a financial impact of up to €2 billion, as the company was not insured against the cyberattack that severely disrupted its operations. This potential loss exceeds JLR’s Profit After Tax of £1.8 billion for the entire financial year 2025.
JLR initially paused production until September 24, but later extended the shutdown until October 1. The company has yet to officially disclose the total financial loss caused by the disruption.
This cyberattack comes at a critical time for Tata Motors, which has been witnessing strong festive demand in India, especially after the recent GST rate cuts. The company reported delivering 10,000 cars and receiving over 25,000 enquiries on just the first day of Navaratri, indicating a robust start to the festive season.
Financilas & Others
The company’s revenue declined by 2.52 percent from Rs. 107,102 crore to Rs. 104,407 crore in Q1FY25-26. Meanwhile, Net profit declined from Rs. 10,587 crore to Rs. 4,003 crore during the same period.
Tata Motors has shown strong financial performance with a 5-year profit growth CAGR of 37.2%. It maintains a solid return on equity (ROE), averaging 29.8% over the last 3 years, and currently stands at 28.1%.
The company also has a healthy Return on Capital Employed (ROCE) of 20% and a manageable debt-to-equity ratio of 0.62. Despite strong fundamentals, its stock trades at a relatively low P/E of 11.3 compared to the industry average of 38.7, indicating potential undervaluation.
Tata Motors is a global leader in the automotive industry, known for designing and manufacturing a wide range of vehicles, from cars and trucks to buses and military vehicles. Since its founding in 1945, Tata Motors has built a strong reputation for innovation, quality, and engineering excellence.
As part of the Tata Group, Tata Motors focuses on creating long-term value for its customers, employees, investors, and communities. With operations in over 125 countries and a workforce of more than 80,000 employees, it is recognized as one of the most prominent automotive companies globally. Tata Motors has developed strong partnerships with customers, continuously advancing its vehicles with new technologies, from traditional combustion engines to electric and autonomous vehicles.
It is committed to sustainability and innovation, with a growing focus on electric vehicles (EVs) and green technologies to reduce environmental impact. In fiscal year 2025, Tata Motors generated significant revenue, solidifying its position as a major automotive player in the global market.
Written by Sridhar J
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