Tata Motors Q1 net down 62%, will the stock follow suit; what charts say?

Tata Motors Net Profit Drop: Technical chart shows that Tata Motors is seen testing the 200-WMA support, a key moving average the stock has broadly held since January 2021.

Tata Motors stock traded with a gain of 2 per cent at ₹647 levels in intra-day trade on Monday as the stock reacted to the Q1 results announced post market hours last Friday. In comparison, the BSE Sensex was up 0.1 per cent at 79,940 levels.  The auto maker reported a 62.2 per cent drop in consolidated net profit at ₹4,003 crore for the first quarter of FY26, when compared with ₹10,587 crore reported in the same period a year ago. On a sequential basis, net profit was down 53.2 per cent.  Revenue from operations dipped by 2.5 per cent to ₹1.03 trillion in Q1FY26. The company attributed the drop in earnings to volume decline across segments, and a drop in Jaguar Land Rover (JLR) profits, owing to US tariffs. The company's management refrained from giving any guidance for FY26 or beyond.  Further, Tata Motors announced the appointment of P B Balaji as the CEO of JLR as a successor to Adrian Mardell, who retires upon completion of his contract. P B Balaji to take over the CEO role from November 2025.  Meanwhile, brokerages have adopted a cautious stance on Tata Motors post the Q1 earnings show.    Motilal Oswal has reiterated its 'Neutral' rating on Tata Motors citing multiple headwinds faced by JLR - mainly the tariff uncertainties on exports to the US, and weak demand in Europe, China. The brokerage has pegged Tata Motors target price at ₹634.  Similarly, Nomura too while flagging demand risks for JLR have given a 'Neutral' rating, and lowered its expected target price on the stock from ₹799 to ₹704 per share. 

Tata Motors

Current Price: ₹647  Likely Target: ₹600  Downside Risk: 7.3%  Support: ₹636  Resistance: ₹670; ₹677  Technically, Tata Motors stock looks unfavourably placed on the daily charts, as it trades below key moving averages. The stock, however, is seen testing support at its 200-Week Moving Average (200-WMA) on the weekly scale, which stands at ₹636. 

 

  Barring the one-week blip in April 2025, Tata Motors has been consistently trading above its 200-WMA since January 2021. Hence, this support stands as a key pivot for the stock at present.    In case, Tata Motors breaks and trades consistently below the 200-WMA, the stock can slip towards the trend line support near  ₹600 levels. This implies a potential downside risk of 7.3 per cent from present levels.  On the other hand, for the sentiment to turn favourable, the stock will need to rally and conquer the key hurdle at ₹690 levels. Intermediate resistance for Tata Motors can be anticipated around ₹670 and ₹677 levels.