Tata Motors PV shares fall up to 3% as firm slips into loss in Q3: Should you buy, sell or hold?

Tata Motors PV share price

• Tata Motors PV Q3 net loss of Rs 3,486 crore due to JLR cyber incident.
• JLR's earnings impacted by weak demand, higher costs, and China luxury tax
• Brokerages remain cautious; target prices range from Rs 310 to Rs 450 per share

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The shares of Tata Motors Passenger Vehicles (TMPVL) dropped more than 3.5 percent on February 6 after the company reported a net loss for the October-December quarter of the financial year 2026, as JLR cyber incident continued to impact earnings.

The shares of the automaker dropped to an intraday low of Rs 361 apiece, before recovering some losses. At close, the stock was down 1.4 percent at Rs 368.90 apiece.

Tata Motors PV Q3 Results:

Tata Motors Passenger Vehicles reported a consolidated net loss of Rs 3,486 crore for Q3 FY26, as against a net profit of Rs 5,406 crore in Q3 FY25. The earnings were impacted by a one-time exceptional cost of Rs 1,597 crore.

The automaker's revenue from operations fell 26 percent YoY to Rs 70,108 crore.

Tata Motors PV said that the cyber attack incident at Jaguar Land Rover last year continued to impact its earnings in Q3. However, it expects strong recovery in Q4.

"The overall global demand continues to remain challenging. We will step up our brand-led actions at JLR to drive up demand for our products and execute enterprise missions programme aimed at enhancing savings and cash flows. Domestic business continues to witness robust demand, and we will accelerate growth through exciting launches and innovations. Overall, we expect a sharp improvement in Q4, led by normalization of JLR volumes," the automaker said.

Motilal Oswal on Tata Motors PV:

Motilal Oswal said the firm’s net loss was much higher than its estimate, largely due to multiple headwinds in JLR, such as continued impact of the cyber incident, weak volumes in key regions and higher VME. “While JLR production is likely to normalize in 4Q, end demand remains weak in key regions and VME is likely to remain elevated at least in the near term,” it said.

The domestic brokerage added that while India business continues to do well, Jaguar Land Rover continues to face multiple headwinds. These include luxury tax in China hurting demand, impact of US tariffs on demand, stringent EU regulations including emissions and battery rules of origin, rising costs of doing business in UK, and rising VME given weak demand in key regions.

“Given the weaker-than-expected performance in 3Q, we now lower our EBITDA by 22%/4% for FY26E/FY27E. Given the significant challenges at JLR, we retain our Sell rating on the stock with an SoTP-based TP of INR323 per share. We continue to value both JLR and India PV business at 2x and 15x EV/EBITDA,” it added.

JM Financial on Tata Motors PV:

JM Financial said that JLR’s EBIT margin came in at -6.9 percent, impacted by production losses due to a cyberattack, tariff-related expenses, higher VME, unfavourable forex, and higher warranty costs.

“While global demand remains challenging, the company expects a recovery in 4Q led by normalisation of volumes and has therefore maintained its guidance of EBIT in the range of 0%-2% (-3% over 9MFY26) and negative free cash flow of £2.2-£2.5bn (-£3bn over 9MFY26). On JLR’s margin front, we expect higher VME, warranty costs and new model launch expenses to continue weighing on profitability. On the other hand, the India PV business posted an EBITDA margin of 6.8% (- 80bps YoY, +110bps QoQ), impacted by higher raw material and other expenses led by new launch costs,” it added.

Owing to JLR’s challenges, JM Financial maintained its ‘Reduce’ rating on the stock with a target price of Rs 357 per share. This implies a downside potential of nearly 5 percent from the stock’s previous closing price.

HDFC Securities on Tata Motors PV:

Besides weak demand globally, Jaguar Land Rover (JLR) is also facing structural headwinds from its business in China as JLR’s addressable market gets disrupted by a higher luxury tax at the top end of its portfolio and by strong competition from Chinese OEMs at the lower end, said HDFC Securities.

“The India PV segment continues to do well and is expected to benefit from the ramp-up of Sierra’s sales, and thus benefit from higher operating leverage and improved mix,” it added.

UBS kept a ‘Sell’ call on the stock, with a target price of Rs 310 apiece. The international brokerage said that margin and FCF pressures are set to intensify in FY27–28 as competitive pressures persist and BEV headwinds weigh, warning that JLR's earnings risks are rising

CLSA maintained its ‘Outperform’ rating on the stock, with a target price of Rs 450 per share. The international brokerage said that JLR volume recovery should strengthen through FY26 on easing supply constraints and new model traction, and maintains confidence in FY26 free‑cash‑flow guidance.

JP Morgan remained ‘Neutral’ on the stock, with a target price of Rs 365 apiece. It said that uncertainty around JLR remains high, with China still a "challenging market" and FY27 visibility limited despite better‑than‑feared recent performance.

Goldman Sachs also remained ‘Neutral’ on the stock with a target price of Rs 380 apiece. It said that JLR production has normalized, but warned that ASPs may moderate due to China discounts, even as new EV and platform launches slated for FY27–28 support medium‑term growth.