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Tata Motor’s Share price India’s leading automobile manufacturer, fell by more than 5% during early trading on Monday. The company anticipates that the earnings before interest and taxes (EBIT) margins for its British luxury division, Jaguar Land Rover (JLR), will range between 5% and 7% for the fiscal year 2026. This projection is below the previously set target of 10%, largely due to tariffs imposed by the United States.
Tata Motors’ share price Drop:
Tata Motors share price: The shares of Tata Motors, India’s leading automobile manufacturer, fell by over 5% during early trading on Monday. This decline is attributed to the company’s forecast for FY26 earnings before interest and taxes (EBIT) margins, which are expected to be between 5% and 7% for its British luxury division, Jaguar Land Rover (JLR). This projection is lower than the previously targeted margin of 10%, largely due to tariffs imposed by the United States.
As the global automotive sector assesses the repercussions of impending US tariffs, Tata Motors is identified as one of the Indian automakers most vulnerable to the tariffs on vehicle imports instituted by Donald Trump, primarily because of its ownership of Jaguar Land Rover.
Tata Motors’ share price:The EBIT margin forecast for the current fiscal year is also anticipated to fall short of the reported margin of 8.5% for FY25.
Additionally, following the announcement of free cash flows amounting to £1.5 billion for the complete fiscal year 2024-25, JLR anticipates that this figure will decrease to nearly zero in FY26. Nevertheless, the management expresses optimism for the future, indicating their expectation of year-over-year improvement for FY27 and FY28.
In light of the challenges posed by US tariffs, Jaguar Land Rover (JLR) has temporarily halted shipments to the United States following the imposition of a 25% duty on all foreign-manufactured vehicles sold in the world’s second-largest automotive market.
Jaguar Land Rover plays a crucial role in Tata Motors, representing roughly two-thirds of its consolidated revenue. In the fiscal year 2025, JLR accounted for approximately 71% of Tata Motors’ overall revenue and 80% of its profit.
Tata Motors Share Price Trend
In light of recent developments, the share price of Tata Motors has decreased by as much as 5.5%, reaching a low of ₹672.75 on the Bombay Stock Exchange (BSE). Compared to its 52-week peak of ₹1,179.05, the Tata Motors stock has plummeted by 43%, leading to a considerable loss of wealth for investors.
Additionally, over the past year, Tata Motors has experienced a 31.40% drop in its stock prices, and year-to-date (YTD), it has declined by 9%.
As of 10:27 AM, Tata Motors’ stock has decreased by 4.3%, trading at ₹681.90 per share.
Tata Motors stock: Should you buy or sell?
Jigar S Patel, Senior Manager – Technical Research at Anand Rathi Shares and Stock Brokers, noted that Tata Motors Share Price has recently faced resistance at the neckline of its inverse head and shoulders pattern, unable to maintain levels above the significant ₹750 mark.
“At present, the stock is positioned on the S3 Camarilla monthly pivot, which signifies an important support area. In this context, immediate support is identified around ₹665, while resistance is observed near ₹715. A definitive daily close above ₹715 would validate bullish momentum and pave the way for additional gains. Until that occurs, it is advisable to await confirmation before entering new long positions,” Patel stated.
Summary
Tata Motors’ share price tumbled ~5% due to JLR’s bleak FY26 guidance — with sharply lowered margins, dwindling free cash flow, and added macro threats like U.S. tariffs and China market weakness — all weighing heavily on the parent company’s value.
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