Tata Motors slips 2% on JLR Q2 sales update; trades lower for 4th day

Tata Motors share price today

 

Tata Motors share price slipped 2 per cent to ₹685.45 on the BSE in Wednesday's intraday trade after Jaguar Land Rover Automotive plc (JLR) recorded weak wholesale sales volume in the second quarter of the current financial year (Q2FY26). JLR's wholesales volumes stood at 66,165 units in Q2FY26, down 24.2 per cent year-on-year (Y-o-Y) and quarter-on-quarter (Q-o-Q).

 

In the past two trading days, the stock of the Tata Group automobile company has fallen 4 per cent. The Tata Motors stock is trading lower for the fourth straight day, declining 5 per cent during the period.

 

JLR volumes down in Q2

 

In a press release, JLR said Q2FY27 was a "challenging" quarter with wholesale volumes at 66,165 units, marking a 24.2 per cent Y-o-Y decline, and retail sales at 85,495 units, down 17.1 per cent Y-o-Y. The slump followed a major cyber incident in September, which halted production and significantly impacted global volumes, combined with the planned wind-down of legacy Jaguar models and incremental US tariffs.

 

All key markets saw retail declines. The UK was hit the hardest (down 32.2 per cent), but JLR has begun a phased restart of manufacturing from October 8, 2025 and is prioritising delivery of its high-value models post-recovery.  ALSO READ | Tata Motors stock tests 200-DMA ahead of demerger; trading strategy here

 

Tata Motors stock: Buy or sell?

 

JLR's Q2FY26 results underscore how external disruptions and strategic restructurings can sharply affect automotive supply chains and topline performance, especially for premium OEMs reliant on global parts flow and high-volume exports, according to analysts.

 

"The cyberattack's timing—compounding legacy Jaguar model phase-outs and new tariffs—demonstrates operational vulnerabilities but also JLR's resilience in prioritising profitable Range Rover and Defender lines. While the near-term impact is negative, with an anticipated further financial hit in full Q2 results, the phased restart and continued focus on high-margin models provide a foundation for recovery," ICICI Securities said in a note. The brokerage had a 'Buy' rating on Tata Motors stock (as of September 2025) with a target price of ₹810.

 

It added: While sales have resumed, and production restarted in a phased manner from September 25, the company noted that retail and wholesale volumes were not materially impacted due to sufficient inventory levels. However, the attack will affect JLR's liquidity, though the management stated it is currently difficult to quantify the exact impact. Going forward, the focus remains on how quickly JLR can scale up production.

 

On the demand front, analysts at JM Financial Institutional Securities noted that the outlook remains positive. US demand is resilient with the tariff uncertainty resolved, UK maintains similar momentum, and China demand is stable although JLR will absorb near-term cost pressure due to the reduction in luxury tax threshold from RMB 1.3 million to RMB 0.9 million.  Those at Nomura estimate JLR's free cash flow to have GBP 750 million in Q2FY26, mainly driven by working capital due to lower volumes.  'With this the net debt for JLR may rise to GBP 1.65 billion. This should, however, reverse as the production picks up. We maintain our Neutral rating on Tata Motors and target price of ₹732," they said.

 

Tata Motors fixes October 14, 2025 as the 'Record Date' for demerger

 

Tata Motors has fixed Tuesday, October 14, 2025 as the 'Record Date' for the purpose of ascertaining the shareholders of the company who shall be issued and allotted 1 share of TML Commercial Vehicles (TMLCV), for every 1 share of the company.

 

The said equity shares, to be allotted by TMLCV, are proposed to be listed with BSE and the National Stock Exchange of India Limited (NSE), subject to necessary regulatory approvals, Tata Motors said.

 

Tata Motors Passenger Vehicles (TMPV) undertaking the passenger vehicles (PV) business with Tata Motors. TMPV is well-positioned to capitalise on this shift, with a robust pipeline of exciting product launches across both electric vehicle (EV) and Internal Combustion Engine (ICE) segments.