Weak JLR guidance, domestic sales worries weigh on Tata Motors stock

Motilal Oswal Research has maintained its "neutral" rating on the stock. The brokerage has reduced its FY26 EBIT margin assumption for JLR to 6 per cent from 6.9 per cent earlier

Tata Motors’ stock has declined 8.4 per cent over the past four trading sessions, weighed down by multiple demand-related headwinds impacting its UK subsidiary, Jaguar Land Rover (JLR).

 

In response to these challenges, the company has revised its FY26 margin guidance downward, prompting several brokerages to downgrade the stock.

 

JLR has lowered its FY26 earnings before interest and taxes or Ebit margin guidance from 10 per cent to a range of 5–7 per cent.

This revision reflects a mix of macro and industry-specific pressures, including the evolving US tariff regime, the ongoing transition to electric vehicles, and a sluggish demand outlook