Shares in Tata Motors Passenger Vehicles plummeted on Friday amid a sharp decline in quarterly profit and a warning that margin pressures will persist into the next quarter, signalling a challenging period ahead for the auto maker and its key Jaguar Land Rover division.
Shares in Tata Motors Passenger Vehicles fell sharply on Friday after the company reported a steep drop in quarterly profit and warned that margin pressure is likely to continue into the current quarter. The stock slid as much as 6% before trimming losses, and at 1:37pm IST it was down 4.8% at 332.85 rupees, its biggest one-day percentage fall since June 17, according to the Reuters report carried by Business Recorder. It was the weakest performer on both the auto index and the Nifty 50.
The warning came after a post-results call on Thursday, when chief executive Shailesh Chandra said commodity-related cost pressures were set to persist through the July-to-September period. “The second quarter is going to hit us badly. Not just us, but the whole industry will get hit,” Chandra said. Tata Motors PV said its quarterly consolidated net profit dropped to 7.75 billion rupees from 39.24 billion rupees a year earlier, while first-quarter margins at Jaguar Land Rover and the domestic passenger vehicle business both missed analyst forecasts.
Brokerages said the weak performance reflected multiple pressures at Jaguar Land Rover, which accounts for about 80% of Tata Motors PV’s revenue. Jefferies pointed to tougher competition, heavy discounting and high warranty costs, and cut its FY27 earnings per share estimate by 10% while lowering its target price and keeping an underperform rating. Nomura said the margin squeeze at both JLR and the home market business could weigh on cash generation in the near term, even as it maintained a neutral stance.
The latest setback adds to a difficult stretch for the company. Mint reported that Tata Motors Passenger Vehicles logged its first annual revenue decline in five years and an operating loss in fiscal 2026, hit by more than $1bn in extra costs from US tariffs and a cyberattack at JLR. Earlier, Mint also reported that the UK luxury unit had dragged down quarterly results despite a stronger India business, after the cyber incident led to substantial charges. Tata Motors has also said separately that a change in group chairman would not affect its investment plans.
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