2 weeks ago
Tata Motors PV shares tumble 6% on 80% profit plunge
Tata Motors is a very big car-making company in India.
It also owns Jaguar and Land Rover, famous luxury car brands made in the UK.
In the three months from April to June, the company earned much less money than before — its profit fell by 80%.
One big reason was that its luxury car business, Jaguar Land Rover, had a tough time.
A fire at a supplier's factory meant fewer cars could be built.
There were also problems in places like the Middle East and China, where fewer people were buying its cars.
Because of this, Tata Motors' share price dropped by 6% in a single day.
Some money experts are worried and say you should sell the shares.
Other experts are more hopeful and say you can still buy them.
Meanwhile, the company's India business is actually doing well, selling lots of electric cars.
Tata Motors Passenger Vehicles shares fell 6% to around ₹329 on August 14 after Q1 net profit plunged 80% year-on-year to ₹775 crore.
Revenue rose 9% year-on-year to ₹94,827 crore, while JLR wholesale volumes declined 9.2% due to a supplier fire and Middle East disruptions.
Motilal Oswal retained a 'Sell' rating with a ₹310 target price, while JM Financial kept an 'Add' rating with a ₹375 target price.
India domestic volumes rose 46% year-on-year and EV volumes surged 112%, but margins remain under pressure from product mix and rising input costs.
JLR faces challenging conditions in China and the Middle East as Tata Motors pivots to North America ahead of launches like the Range Rover EV and Jaguar Type 01.
- Who
- Tata Motors Passenger Vehicles (Tata Motors PV), its UK-based luxury unit Jaguar Land Rover, and analysts at Motilal Oswal and JM Financial.
- What
- Shares fell 6% after Q1 net profit plunged 80% year-on-year to ₹775 crore, weighed down by JLR challenges and elevated raw material costs.
- Where
- India, with JLR operations based in the UK and impacted by market disruptions in China and the Middle East.
- When
- Friday, August 14, following the June-quarter (Q1 FY27) results reported on Thursday.
- Why
- Continued challenges at JLR, including a component supplier fire, Middle East conflict disruptions, and the wind-down of outgoing Jaguar models, along with rising input costs, hurt profitability.
Bearish analyst view (Motilal Oswal)
Positive analyst view (JM Financial)
Stock rating
Bearish analyst view (Motilal Oswal)
Motilal Oswal retained a 'Sell' rating with a ₹310 target price, staying cautious due to headwinds at JLR and geopolitical uncertainty.
Positive analyst view (JM Financial)
JM Financial retained an 'Add' rating with a higher ₹375 target price, valuing JLR at 3x EV/EBIT and the standalone business at 11x EV/EBITDA.
JLR recovery outlook
Bearish analyst view (Motilal Oswal)
Motilal Oswal expects JLR's major cost-reduction initiative to only partially offset ongoing demand and cost challenges.
Positive analyst view (JM Financial)
JM Financial notes JLR faces challenges in China and the Middle East but left its JLR estimates unchanged, implying a less negative stance.
India business outlook
Bearish analyst view (Motilal Oswal)
Margins remain under pressure due to adverse product mix and rising input costs despite India gaining market share.
Positive analyst view (JM Financial)
JM Financial raised its FY27 domestic PV volume growth estimate to around 16.5% from 12.3%, citing strong domestic momentum.
Key facts
- Q1 net profit
- ₹775 crore, down 80% year-on-year from ₹3,924 crore
- Q1 revenue
- ₹94,827 crore, up 9% year-on-year
- Share price move
- Fell 6% to around ₹329 on August 14
- Motilal Oswal rating
- 'Sell' with an SoTP target price of ₹310 per share
- JM Financial rating
- 'Add' with an SoTP target price of ₹375 per share
- JLR wholesale volumes
- Declined 9.2% in Q1 FY27
- Domestic PV and EV volumes
- Domestic volumes up 46% YoY; EV volumes up 112% YoY









