Tata Motors Shares Nosedive Over 5% After JLR Cuts FY26 Outlook — But Long-Term Growth Hopes Remain Alive Amid U.S. Tariff Storm

Tata Motors Shares Tumble Over 5% as JLR Cuts FY26 Profit Outlook Amid U.S. Tariff Concerns

In early trading on Monday, shares of India’s top automaker, Tata Motors, fell more than 5% as the firm predicted a reduced earnings margin for its British luxury car unit, Jaguar Land Rover (JLR), for FY26.  Because of worries about U.S.-imposed tariffs, the manufacturer now anticipates JLR’s Earnings Before Interest and Taxes (EBIT) margin to be between 5% and 7%, which is much lower than the original goal of 10%.


Pressures on JLR’s FY26 Outlook: The stock of Tata Motors

 Because it owns JLR, Tata Motors is still one of the most vulnerable Indian automakers as the global auto sector evaluates the effects of U.S. tariffs.  Additionally, the revised EBIT margin estimate is less than the 8.5% margin for FY25 that was previously announced.

JLR, which reported £1.5 billion in free cash flow for FY2024–2025, anticipates that amount to drop nearly to zero in FY26 in addition to margin issues.  Management is hopeful and anticipates year-over-year improvements in FY27 and FY28 in spite of these obstacles. Tata Motors shares.

US Tariffs Put a Stop to Shipments.

Donald Trump’s proposal to impose a 25% tariff on all cars made in other countries and sold in the United States, the second-largest auto market in the world, made matters worse.  JLR responded by temporarily stopping exports to the nation.

JLR plays a crucial role in Tata Motors’ business, contributing significantly to its financial health. In FY25 alone, the British luxury carmaker accounted for 71% of Tata Motors’ total revenue and generated a staggering 80% of its overall profits, making it a cornerstone of the company’s operations.

Tata Motors Shares:

Tata Motors Shares

Trend of Tata Motors Stock

 Tata Motors’ shares took a significant hit, tumbling 5.5% to touch a day’s low of ₹672.75 on the BSE shortly after the announcement was made.  The stock has dropped 43% from its 52-week peak of ₹1,179.05, wiping off a large portion of investor wealth. Tata Motors Shares

The share price of Tata Motors has gone down 31.40% in the last year and is down about 9% so far this year.  The stock was down 4.3% at ₹681.90 as of 10:27 AM.

Agency inputs

Disclaimer: This article is meant strictly for educational purposes only. The views and recommendations expressed are solely those of individual analysts or broking firms and do not reflect the opinions of Mint.  Before making any investment decisions, investors are encouraged to speak with licensed financial advisors Tata Motors Shares.

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