Tata loses $75 billion in market value after visa fees hikes and cyberattack

India’s Tata Group has seen its market value plummet by more than $75 billion this year, with recent weeks bringing especially sharp losses as the conglomerate grapples with new American visa restrictions and a damaging cyberattack on its luxury car operations.

The total market worth of the conglomerate’s 16 publicly traded companies fell to its lowest point in almost two years on Friday, according to data from Bloomberg.

More than $20 billion of this year’s decline, representing over one-fifth of the total loss, has occurred since September 19, when President Donald Trump introduced stricter rules for work visas to the United States. The changes have particularly affected Tata Consultancy Services.

Tata Consultancy Services, widely regarded as the jewel in the group’s crown and a representation of India’s technology strength, has suffered the heaviest losses.

The company’s shares dropped more than 8% last week, marking its worst weekly performance since 2020. The stock declined for five straight trading sessions alongside other major Indian tech firms Infosys and Wipro after Trump increased fees for H-1B visas.

Analysts Anurag Rana and Andrew Girard from Bloomberg Intelligence explained in a research note that these companies might avoid bidding on contracts requiring significant on-site presence in America, which could damage new contract acquisitions over the coming quarters. They noted that companies like TCS that focus purely on services face the greatest danger.

Cyberattack cripples Jaguar Land Rover

Tata Motors also took a hit following a cyberattack that paralyzed operations at Jaguar Land Rover facilities. The luxury automaker later received support from the United Kingdom government for a $2 billion loan designed to help ease financial pressure on its suppliers.

The automaker has said vehicle production at its plants will not resume until October 1 at the earliest. Reports from the BBC indicate the shutdown is costing JLR around $50 million each week in lost output, with several smaller suppliers now facing potential bankruptcy. One analyst speaking to the Financial Times estimated the total revenue loss could reach $4.7 billion if JLR remains unable to manufacture vehicles through November.

The Financial Times reported that the impact on JLR’s bottom line will be worse because the company lacked insurance protection against cyberattacks and must absorb the complete cost.

Government steps in with emergency support

Business Secretary Peter Kyle announced on September 28 that the government agreed to support Jaguar Land Rover with a guarantee expected to provide up to £1.5 billion in financing to stabilize its supply network following the cyberattack.

The loan from a commercial bank, backed by the Export Development Guarantee provided by UK Export Finance, will be paid back over five years and boost JLR’s cash reserves to help suppliers hit hard by the shutdown.

Looking at the wider Tata Group, shares of 12 out of its 16 publicly traded firms have fallen this year. Tejas Networks has seen half its value disappear, while Trent and Nelco have each dropped nearly a third.

Ties between the United States and India have gotten worse over recent months as Washington put extra tariffs on Indian goods after New Delhi kept buying Russian oil.

In India, shares of technology companies fell after the United States announced its visa fee plans for bringing new workers into the country. The changes pose a major threat to companies in the technology and finance industries that depend heavily on highly skilled workers from abroad, especially from India and China.

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