Shares of Tata Motors Passenger Vehicles (TMPV) witnessed a sharp sell-off on Wednesday after its luxury-vehicle subsidiary, Jaguar Land Rover (JLR), issued a weaker-than-expected financial outlook.
Shares of TMPV were trading at Rs 355 a piece and ended at Rs 360.95 by the end of the trading session, reflecting an 8.3 per cent fall. Analysts attributed the steep decline primarily to JLR's financial report, which fell short of investor expectations and raised fresh questions about the company's ability to navigate global uncertainties.
British luxury carmaker Jaguar Land Rover expects to report a profit margin of 4 per cent for the fiscal year 2027, significantly below market expectations. Analysts believe the weakness is due to the fallout from the supply-chain disruptions, weakness in key markets such as China, US tariffs and last year's cyberattack, which caused the firm's production to grind to a halt.
"The drop may be because the announcement has not brought
any near-term margin relief, as the U.S. tariffs, cyberattack impact keep the pressure on profitability," said Kranthi Bathini, director of equity strategy at Wealthmills Securities to Reuters.
The statement came as a disappointment for investors who were looking forward to a stronger recovery in the luxury vehicle business. JLR contributes almost 80 per cent to its parent company, Tata Motors Passenger Vehicles' revenue and earnings, making its performance critical for the company's overall financial health.
As per Reuters, JLR said it will prioritise the Defender brand to drive
growth in the US under its partnership with the Netherlands-based automaker Stellantis, while also exploring new opportunities for North American customers.
