TMPV Shares Tumbles for Second Day; Sink 9% in 5 Days After Weak Q2 FY26 Results; Should You SELL/Buy/Hold?

Tata Motors shares continued their losing streak for the second consecutive day, plunging nearly 9% in the last five days and hitting a seven-month low of Rs. 363 per share. The stock continues to trade in the red after the company's Tata Motors Passenger Vehicles (TMPV) division posted a weak Q2 FY26 performance, mainly impacted by a sharp deterioration in Jaguar Land Rover (JLR) profitability.

As of today, the Tata Motors share price was trading at Rs. 371.75, down 0.25% intraday, 9.01% in the past week, and 18.04% year-to-date.

TMPV Q2 FY26 Results

Tata Motors Passenger Vehicles reported a mixed set of numbers for the quarter ended September 30, 2025, with total income from operations rising to Rs. 72,349 crore, up from Rs. 63,656 crore last year. However, the company also saw operational pressures.

Pre-tax loss from continuing operations widened to Rs. 8,070 crore, compared to Rs. 4,808 crore in September 2024. Net loss after tax deepened to Rs. 6,368 crore, impacted by higher expenses, muted JLR contribution, and weak JV/associate performance.

TMPV, however, posted a massive 2,110% YoY jump in profit to Rs. 76,170 crore, driven almost entirely by a one-time notional gain of Rs. 82,616 crore due to corporate restructuring.

TMPV Share Price Target

Brokerage firm HDFC Securities Institutional Research, in its report, has set a target price of Rs. 342, and the brokerage has maintained its REDUCE rating. As per the slide, the drop in Tata Motors' share price is mainly because of the weakness in JLR, which has faced weak demand in Europe and China, higher US import tariffs, luxury tax in China, supply chain disruptions & more.

The firm in its report said that "Management has indicated that even without the cyber incident, it would have amended JLR's guidance at this point. Weaker demand for JLR in key markets like Europe and China continues, leading to higher variable marketing expense (VME). Also, higher US tariffs and China's luxury tax, both currently being absorbed by the OEMs to some extent, have structurally impacted the company's cost base over the medium term. However, the India PV division is in a stronger position, aided by recent GST rate rationalisation and improved EV profitability (including PLI)."

About Tata Motors

Tata Motors, the automotive arm of the TATA group, headquartered in Mumbai, manufactures commercial vehicles, passenger vehicles, trucks, vans, and buses, including luxury brands like Jaguar Land Rover. It also focuses on electric vehicles and innovative mobility solutions. The company has a large presence in the Indian market and internationally, with manufacturing and R&D centres in India and abroad.
Tata Motors recently completed its much-anticipated demerger, separating the passenger vehicle (TMPV) and commercial vehicle businesses into distinct listed companies. Investors holding Tata Motors shares on the record date (October 14, 2025) received one share of the commercial vehicles company for every Tata Motors share held.

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