Shares of Tata Motors Ltd plunged over 4.6% to ₹679.15 on Monday, June 16, after Jaguar Land Rover (JLR) issued a weaker-than-expected financial outlook for FY26 during its latest investor presentation. The stock opened lower and continued to slide, touching an intraday low of ₹679.10.
Tata Motors’ UK-based luxury car subsidiary JLR stated that it now expects its EBIT margin for FY26 to be in the range of 5–7%, down sharply from the earlier guidance of 10%. This comes as a disappointment to investors, particularly as the company had reported a strong EBIT margin of 10.7% in Q4FY25.
In addition to the margin downgrade, JLR said it anticipates free cash flow to be close to zero in FY26, although it expects year-on-year improvement in FY27 and FY28. The update has raised concerns about the near-term profitability and cash generation of the company’s luxury vehicle arm, which has been a key driver of growth in recent quarters.
At 9:40 AM, Tata Motors’ stock was trading at ₹679.15, down 4.62% from the previous close of ₹712.05. The company’s market capitalization stood at ₹2.51 lakh crore.
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