Tata Motors Passenger Vehicles (PV) shares fell 4.5% in early trade on Friday, making the company the top loser on the Nifty 50 index. The drop followed the release of Q1 FY27 results that showed a sharp fall in profit and pressure on margins.
In early trade the stock was trading around Rs 334, after closing 1.92% higher at Rs 349.60 on Thursday ahead of the results. Since the beginning of 2026 the share price has fallen about 9%, a larger decline than the 6.7% fall seen in the Nifty 50.
CLSA kept an ‘Outperform’ rating on the stock and set a target price of Rs 452 per share. The brokerage said JLR’s EBIT margin was 90 basis points above estimates, while domestic PV EBITDA was below expectations. Management expressed confidence in meeting JLR’s FY27 guidance of a 4% margin and breakeven free cash flow.
CLSA also highlighted strong demand momentum for the domestic business. It expects inventory to build ahead of the festive season and forecasts dispatches of 65,000 to 70,000 units a month over the next few months.
Nomura gave the stock a ‘Neutral’ rating with a target of Rs 389. It said Indian passenger‑vehicle demand remains robust but the business faces steep cost pressure. For JLR, new launches are key to the outlook, with China remaining challenging and the US offering potential.
HSBC kept a ‘Hold’ rating and lowered its target to Rs 360. The brokerage noted that commodity‑led margin pressure offset strong domestic demand in Q1 and is likely to continue into Q2. It also said JLR’s recovery depends on new models, as the current portfolio has aged.
Citi took a bearish stance, maintaining a ‘Sell’ rating and a target of Rs 305, implying a 13% downside from Thursday’s close. It said Q1 was weaker than expected for both JLR and the India PV business due to severe cost headwinds and expressed disappointment with the margin trajectory.
Despite the cautious views, management remains positive about Indian demand. It guided FY27 domestic volume growth to high double‑digit figures and reiterated double‑digit revenue growth for JLR, focusing on four new launches in the near term.
Tata Motors PV reported an 80% year‑on‑year fall in Q1 consolidated net profit attributable to shareholders, dropping to Rs 775 crore. Revenue from operations rose 9.2% to Rs 95,799 crore, while profit before exceptional items and tax fell 59% to Rs 1,606 crore.
JLR wholesales fell 9.2% year‑on‑year, affected by temporary supply constraints, Middle East conflict and the planned wind‑down of Jaguar. The domestic business saw 65% revenue growth, but higher commodity costs and foreign‑exchange movements weighed on margins. Consolidated free cash flow was negative Rs 11,800 crore, largely due to seasonal working‑capital requirements.