CHENNAI: Tata Motors' stock experienced a notable decline over the past two trading sessions, driven by revised financial forecasts from its British subsidiary, Jaguar Land Rover (JLR). The stock fell 0.82% to a low of ₹681.20 on the BSE at 10.44 am in Tuesday's opening trade, marking a cumulative drop of approximately 8% over four consecutive sessions.
On Monday (June 16), the shares declined by 5.2%, closing at ₹674.70 on the BSE.
Key factors influencing the decline include JLR’s revised financial outlook and the impact of U.S. tariffs.
JLR lowered its EBIT margin forecast for FY26 to 5–7%, down from the previously expected 10%. The revision reflects increased capital expenditures, product transitions, and a stronger focus on electric vehicle (EV) development.
In addition, the imposition of a 25% US import tariff on foreign-made vehicles has negatively impacted JLR’s profitability. As a result, the company has temporarily halted shipments to the US—a market that accounts for more than a quarter of its sales—and is exploring alternative markets and pricing strategies.
Several brokerages, including Motilal Oswal and Elara Securities, have maintained a ‘Neutral’ rating on the stock. Motilal Oswal reiterated a target price of ₹690, citing the multiple headwinds JLR faces. Elara Securities projected a 5% decline in FY26 volumes, revenue of £28 billion, and an EBIT margin of 6%, gradually improving to 8.5% by FY28.
In response to these challenges, Tata Motors has reaffirmed its commitment to improving operational efficiencies across the organization. The company is implementing targeted enterprise-level initiatives to support its broader transformation strategy amid ongoing headwinds.
According to analysts, while the near-term outlook for Tata Motors remains cautious, the company’s strategic focus and efficiency-driven initiatives may support a recovery in the medium to long term.