Tata Motors Passenger Vehicles shares fell approximately 7.2% to a seven-month low of ₹363 today, following a revision in Jaguar Land Rover’s (JLR) fiscal year 2026 margin target due to a recent cyberattack. This situation has raised concerns regarding future production volumes.
According to brokerage updates, Jefferies has set a “Underperform” rating for Tata Motors’ passenger vehicles, with a target price (TP) of ₹300, citing a reported EBITDA loss in the September quarter, primarily due to disruptions resulting from the cyberattack at JLR. They noted that disruptions are expected to continue into the third quarter but should stabilize by the fourth quarter. Additionally, Jefferies outlined challenges for JLR, including heightened competition, consumption tax issues in China, increased discounting, and the transition to the battery electric vehicle market, while acknowledging that Tata Motors’ Indian passenger vehicle segment is better positioned to exploit growth opportunities.
Goldman Sachs also maintains a “Neutral” stance with a TP of ₹365, noting a second-quarter miss on revenues and EBITDA, which were both adversely affected by the significant disruptions at JLR. They reported a JLR EBITDA loss of GBP 78 million in the second quarter versus a projected GBP 327 million, with a substantial expectation of production losses in the third quarter due to the cyberattack.
CLSA has given Tata Motors an “Outperform” rating with a TP of ₹450, indicating that JLR’s EBITDA margin fell to negative 8.6%, far worse than their initial estimate of negative 2%, primarily due to the plant shutdown provoked by the cyberattack and subsequent impacts related to U.S. tariffs. They reported that production in September was entirely lost, with output in October reaching only 17,000 units. They also mentioned that the domestic PV business maintained an EBITDA margin of 5.8%, down 40 basis points year-on-year, but expressed confidence in growth potential fueled by GST cuts, particularly in the small-to-mid SUV segment.
In the latest transactions, Tata Motors Passenger Vehicles shares traded down 4% at ₹374.35 on the National Stock Exchange at 11:11 AM, hitting a low of ₹363 earlier today. The company’s stock was the most significant loser on the benchmark Nifty 50 index, which saw a slight increase of 0.15%.
Additionally, Tata Motors has revised its guidance for JLR’s fiscal year 2026, lowering expected EBITDA margins from 5-7% to a range of 0-2%, and anticipated free cash flow to a negative GBP 2.2–2.5 billion. The market response suggests investor anxiety regarding the company’s capacity for sustained volume growth amid escalating operational challenges.
Published on November 17, 2025.
