The CFO stated that they will achieve FY25 EBIT margin guidance of at least 8.5%, however, noted that FY26 JLR volume performance may be stressed due to the discontinuation of the Jaguar models.
Additionally, it was highlighted that potential US tariffs on Europe may require JLR to offset the impact through price hikes and cost savings.
Meanwhile, India’s passenger vehicle (PV) volume growth in FY26 is expected to be fueled by the repositioning of the Curvv model and the launch of the Harrier EV and Sierra model.
After this development, here is what analysts at various brokerage firms say:
Motilal Oswal: Neutral| Target price: Rs 705
The company aims to prioritize profitable volume growth over market share expansion while maintaining its FY25 guidance, in contrast to other OEMs issuing profit warnings. In the Indian CV segment, the focus will be on regaining lost share in SCVs, whereas in the Indian PV segment, efforts will be directed towards new launches and enhancing service capabilities. However, concerns remain due to potential US tariffs, weak global macro conditions, and the impact of margin-dilutive EV expansion, leading to a cautious outlook on the company’s performance.
Nuvama: Reduce| Target price: Rs 720
Nuvama has maintained a Reduce rating on Tata Motors with a target price of Rs 720. The company remains on track to achieve its FY25 EBIT margin guidance of at least 8.5% and turn net cash positive. However, concerns persist regarding FY26 JLR volume performance, which may be impacted by the discontinuation of Jaguar models and a subdued China outlook, although Land Rover’s performance is expected to outpace the industry. Additionally, potential US tariffs on Europe could force JLR to offset the impact through price hikes and cost savings. In the Indian PV segment, volume growth in FY26 is expected to be driven by the repositioning of the Curvv model and the launch of the Harrier EV and Sierra model.
Also read: Govt plans to sell 2-3% stake in LIC, to meet 10% public shareholding target by 2027: Reports
Elara Securities: Buy| Target price: Rs 872
Elara has maintained a Buy rating on Tata Motors but has cut the target price to Rs 872 from Rs 909.
The firm is closely monitoring Jaguar Land Rover’s (JLR) strategy, balancing premiumization and volume growth, amid a slowing global demand environment. Additionally, concerns remain over order backlog exhaustion, which could impact future performance. Elara has also lowered EV/EBITDA multiples for Commercial Vehicles (CV) and Passenger Vehicles (PV) segments to 10x/13x from 11x/14x, citing a muted outlook for the company.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
