Tata Motors shares surged over 6% in early trade on Friday after investors cheered a better-than-expected operational performance from Jaguar Land Rover (JLR), despite weakness in revenue growth.
The stock was trading at ₹360.35, up 6.38%, after the company’s quarterly business update indicated that profitability remained stronger than Street expectations.
JLR reported Q4 revenue of £6.9 billion, down 11.1% year-on-year. However, margins came in ahead of analyst estimates, aided by production normalisation and improved operating efficiencies. The company also maintained its investment plans and continued to deliver on its profitability and free cash flow targets for FY26.
Market participants viewed the margin performance positively, especially as concerns around global luxury demand and cost pressures had weighed on sentiment in recent quarters.
The company’s India passenger vehicle business also delivered strong year-on-year growth during the quarter. Revenue from the segment rose 43.3% to ₹18,598 crore compared to ₹12,977 crore in the corresponding period last year.
EBITDA for the India PV business increased 29.3% year-on-year to ₹1,059 crore from ₹819 crore. However, EBITDA margin softened to 5.7% from 6.3% a year ago, reflecting continued competitive intensity and higher costs.