Jefferies has maintained its Underperform rating on Tata Motors while cutting its target price to ₹550, following a weak Q1FY26 performance. The brokerage noted that EBITDA and pre-exceptional PBT fell 37–41% YoY, coming in 13–22% below estimates.
It highlighted several challenges for JLR, including increased competition and consumption tax in China, higher warranty costs, the ongoing BEV transition, and ageing key models. In India, Jefferies flagged slipping passenger vehicle (PV) market share, margin pressures, and muted commercial vehicle (CV) demand. The brokerage also expressed scepticism over the Iveco acquisition and cut its FY26–28 EPS estimates by 8–15%.
Disclaimer: The above views are those of the brokerage. Please consult a SEBI-registered investment advisor before making any investment decisions.
