Tata Motors Shares Crash 42% from 52-Wk High; Tanks 5% Today After JLR Cuts FY26 Outlook; Can It Recover?

Shares of Tata Motors fell sharply on Monday, June 16, tumbling as much as 5.4% in early trade after its luxury car brand Jaguar Land Rover (JLR), based in the UK, shared a weaker-than-expected financial forecast for the financial year FY26. This brought negative investors' sentiments especially with rising global tensions and the threat of new US tariffs on imported cars

Tata Motors Share Price Today

The stock opened lower on the NSE at Rs 711, hitting an intraday low of Rs Rs.672.95, down over 5.4% from Friday's close. Tata Motors shares in the last six months have fallen by 13% and about 30% in the 12 months. The Tata Group stock is now 42% down from its 52-week high level. The current market capitalisation stands at Rs. 2.52 Lac Crore as of June 16.

Jaguar Land Rover's FY26 Outlook Disappoints

The decline in stock was triggered by Jaguar Land Rover's FY26 earnings guidance, where the company expects EBIT (Earnings Before Interest and Taxes) margins to fall to between 5% and 7%, significantly lower than its previously targeted 10% margin as per reports. For context, JLR reported an EBIT margin of 8.5% in FY25, making the revised outlook a substantial downgrade.

Tata Motors' management cited rising input costs, ongoing chip shortages, and macroeconomic pressure in key markets like the US and Europe as reasons behind the muted forecast.

However, experts suggest that the biggest pressure point is the major US import tariffs, which could directly impact the luxury carmaker's export margins and demand.

Tata Motors Share Price Target

Analyst at Kotak Institutional Equities maintained a SELL rating on Tata Motors stock, with a fair value (FV) target of Rs. 600. In its note, Kotak stated: "We broadly maintain our FY2026-27E consolidated estimates. However, the tariff-related risks from the US could significantly dent financials, and we believe that is not yet fully factored into current valuations."

Kotak also expressed concerns over underperformance in Tata Motors' domestic business, pointing to weak demand conditions and rising input costs.

Motilal Oswal Financial Services took a more neutral stance, assigning a target price of Rs.690, which implies a downside of around 4% from the current market price of Rs. 718. The broking highlighted that while Tata Motors has set ambitious targets for its Commercial Vehicles and Passenger Vehicles segments, execution remains a key challenge.

"With a weak demand environment in both CVs and PVs and mounting cost pressures, the company's plans to improve market share and margins will be difficult to achieve in the near term," the brokerage firm noted.

Tata Motors Q4 Results

On May 13th this year, Tata Motors reported a sharp 51% year-on-year decline in consolidated net profit for the fourth quarter ended March 2025, with earnings falling to Rs. 8,470 crore compared to Rs. 17,407 crore in the same period last fiscal.

Despite the steep drop in net profit, Tata Motors' consolidated revenue from operations saw a marginal increase of 0.4%, rising to Rs 1,19,503 crore from Rs 1,19,033 crore in Q4 FY24.

The company also reported a decline in total expenses during the quarter, which stood at Rs. 1,09,056 crore, which was down from Rs. Rs.1,11,136 crore in the year-ago period. The weak profitability is attributed to muted performance in its UK-based subsidiary Jaguar Land Rover (JLR) and rising cost pressures across segments.

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