Tata Motors shares drop 5% in 2 days as JLR cyberattack rattles investors

Tata Motors share price: Automobile giant Tata Motors shares continued their slide for the second consecutive day, dropping 5.20 per cent in the last two sessions. 

 

On Thursday, September 25, 2025, the Tata Motors stock fell as much as 2.59 per cent to an intraday low of ₹665 per share. Around 10 AM, it was trading 2.09 per cent lower at ₹668.45 (top losers on BSE Sensex index). In comparison, BSE Sensex was largely flat at 81,684.18.

What led to the drop in Tata Motors shares?

 

The decline comes amid operational disruptions at Tata Motors’ UK subsidiary, Jaguar Land Rover (JLR), following a major cyberattack. The company has now extended the current pause in production until Wednesday, October 1, 2025. 

 

 

“Today we have informed colleagues, suppliers and partners that we have extended the current pause in production until Wednesday, October 1, 2025, following the cyber incident. We have made this decision to give clarity for the coming week as we build the timeline for the phased restart of our operations and continue our investigation,” JLR said in a statement. 

 

“Our teams continue to work around the clock alongside cybersecurity specialists, the NCSC and law enforcement to ensure we restart in a safe and secure manner. Our focus remains on supporting our customers, suppliers, colleagues, and our retailers, who remain open. We fully recognise this is a difficult time for all connected with JLR and we thank everyone for their continued support and patience,” it added. 

 

Reports also indicate that JLR could face losses of up to £2 billion, an amount that could potentially wipe out its entire FY25 profit, as the company was not insured against such an attack. 

 

According to Reuters, JLR had been in talks with broker Lockton to finalise a cyber insurance policy but had not completed the deal before the incident occurred. The Financial Times noted that combined with ongoing production shutdowns, the financial impact could surpass JLR’s FY25 Profit After Tax of £1.8 billion. 

 

JLR operates three factories in Britain, producing roughly 1,000 cars per day. The cyberattack, which occurred in late August, forced the company to shut down IT networks and halt production, affecting its 33,000 employees. The BBC reported that the shutdown is costing the company about £50 million ($68 million) per week.

 

Tata Motors Q1 results

 

Tata Motors reported a consolidated net profit of ₹4,003 crore for Q1FY26, down sharply by over 62 per cent year-on-year (Y-o-Y) from ₹10,587 crore in the same quarter last year. On a sequential basis, profit declined more than 50 per cent from ₹8,556 crore in Q4FY25.

 

The fall in earnings was attributed to lower volumes across segments and a decline in Jaguar Land Rover (JLR) profits, which were impacted by US-imposed tariffs.

The company’s consolidated revenue from operations stood at ₹1.03 trillion in Q1FY26, down 2.45 per cent from ₹1.06 trillion in Q1FY25.

 

Should you buy, sell or hold Tata Motors Shares?

 

According to Chokkalingam G, founder and head of equity at Equinomics Research, the company is grappling with challenges on both domestic and international fronts, including weak Q1 results, production delays, uncertainty over tariffs, and recent cyberattacks. These factors have dampened market sentiment further. 

 

Given the situation, Chokalimgan suggests investors consider largely domestic demand driven stocks like Bajaj Auto and M&M. Even tyre stocks like MRF is worth looking at as they would benefit from GST rate cut on tyres and recent over 18 per cent correction in crude oil and domestic natural rubber prices from their respective 52- week highs instead of Tata Motors until the outlook becomes clearer.

 

Deven Choksey Research analysts, in a note dated August 22, said they have revised Tata Motors’ FY26E and FY27E Ebitda estimates down by 10.4 per cent and 6.5 per cent, respectively. The revisions reflect weaker JLR margins, subdued domestic demand across both passenger vehicle (PV) and commercial vehicle (CV) segments, and several headwinds for JLR, including US tariff-related export uncertainties, softening demand in key markets such as Europe and China, and rising costs related to VME, warranty, and emissions.

 

The brokerage has rolled forward its valuation to June 2027 estimates and values Tata Motors on a sum-of-the-parts (SOTP) basis, JLR at 3.0x Jun’27 EV/Ebitda, Chery-JLR JV at 2.0x, Indian PV business at 13.0x, CV business at 12.0x, and its stake in Tata Technologies at ₹31 per share. This implies a target price of ₹722 per share.

 

Deven Choksey Research analysts, however, maintained an ‘Accumulate’ rating on the stock, citing growth prospects supported by stable JLR margin guidance, upcoming launches, and the strategic Iveco acquisition.