JLR trims FY26 margin forecast to 5%-7% as US tariffs cast shadow

British luxury carmaker Jaguar Land Rover cut its fiscal 2026 earnings before interest and taxes margins forecast to 5 per cent-7 per cent on Monday from 10 per cent earlier, citing uncertainty in the global auto industry as US tariffs loom.

Shares in the company's Indian parent Tata Motors dropped as much as 4.7 per cent in early trade after the announcement.

JLR's EBIT margin forecast was also below its reported margin of 8.5 per cent for the previous fiscal year. 

JLR, which gets over a quarter of its sales from the US, had temporarily paused shipments to the country after its President Donald Trump slapped a 25 per cent duty on all foreign-made vehicles sold in the world's second-largest car market.

Tata Motors' ownership of JLR makes it among the most exposed Indian automakers to Trump's tariffs on vehicle imports.

Unlike most of its rivals, including German brands Mercedes- Benz and BMW, JLR has no manufacturing presence in the US.