Shares of automobile giant Tata Motors Ltd saw an uptick in the early session on Monday, August 11, even after the Tata group firm reported a 30 percent fall in net profit for the quarter ended June 30, 2025.
Tata Motors posted a net profit of Rs 3,924 crore for the April-June quarter of the financial year 2026, down 30 percent from Rs 5,643 crore net profit reported in the same period last year. The firm's revenue from operations meanwhile dropped 2.5 percent on-year to Rs 1.04 lakh crore in Q1 FY26, from Rs 1.07 lakh crore in Q1 FY25.
Tata Motors said its performance was impacted by volume decline in all businesses and a drop in profitability primarily at Jaguar Land Rover (JLR). The firm said Donald Trump’s tariff impacted the luxury automaker’s revenues, which were down over 9 percent to £6.6 billion, with EBIT margin declining 490 bps to 4 percent.
At 9.25 a.m., shares of the firm were quoting Rs 637.85, higher by 0.6 percent on the NSE.
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According to international brokerage Jefferies, Tata Motors' shares are likely to 'underperform' in the near-term, leading the brokerage to cut its price target to Rs 550 per share.
The brokerage flagged rising competition, China tax, warranty costs, and aging models at JLR, while noting market share losses and margin pressure in India’s passenger vehicle segment, weak commercial vehicle demand, and concerns over the Iveco acquisition. It also cut FY26–28 EPS estimates by 8–15 percent.
Nuvama Institutional Equities expects muted growth for Tata Motors’ JLR, forecasting just 1 percent CAGR due to Jaguar model discontinuations, weak China and Europe sales, and US tariffs. India’s commercial vehicle business is also likely to see only 1 percent CAGR on a high base, reasonable transporter utilisation, and railway competition.
Despite cost-saving efforts, muted demand and rising marketing spends are expected to limit EBITDA CAGR to 4 percent over FY25–28E. As a result, Nuvama retained its ‘reduce’ rating, cutting its target price to Rs 610, down from Rs 670 earlier.
Motilal Oswal flagged multiple headwinds for JLR, including tariff-related uncertainty for US exports, weak demand in Europe and China, and rising warranty, emission, and marketing costs. Management has refrained from giving guidance beyond FY26. With margin pressure expected to persist and slowing demand in India’s CV and PV businesses, the brokerage reiterated its ‘neutral’ call, and a price target of Rs 631 per share.
On the flip side, domestic brokerage Emkay Global noted that over the past five years, JLR has improved its business profile, profitability, and balance sheet, achieving resilience through enterprise initiatives aimed at saving £1.4 billion annually. The brokerage remains positive on Tata Motors, maintaining a ‘buy’ rating, with a target price of Rs 750.
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