Tata Motors PV share price: Tata company’s loss in Q3; Still brokerage bullish! What should investors do? – market

ICICI Securities upgraded the stock to ‘Add’ from ‘Hold’. The brokerage has given a target of Rs 410 on the stock, whereas the previous target was Rs 385.

Positive trigger in Tata Motors Passenger Vehicle shares

The Indian business is due to improve as well as have a stable Jaguar Land Rover (JLR) outlook. Analysts expect Tata Motors Group Company to see rapid growth going forward due to favorable product mix, strong response from new launches, cost optimization benefits and expanding margins.

Tata Motors PV Vehicle Q3 Results

In the October-December quarter of the current financial year, Tata Motors Passenger Vehicles (TMPV) posted a net loss of ₹3,483 crore, compared to a profit of ₹4,164 crore in the same quarter last year (Q3FY25). This loss was due to provisioning due to JLR cyber attack incident and changes in labor code and stamp duty (post demerger from commercial vehicle business).

Operationally, TMPV’s consolidated revenue declined 26 per cent year-on-year to ₹70,108 crore.

JLR suffered a loss of 298 million pounds in Q3FY26, compared with a profit of 375 million pounds last year, and a 39 percent decline in revenue as the company’s production was reduced by about 50,000 units due to the JLR cyber attack in August-September. Of this, 30,000 units impacted Q3 results.

Additionally, the discontinuation of ‘Jaguar’ models, loss of market share in China due to intense competition, increased luxury taxes and tariffs in the US and weak demand in Europe also impacted JLR’s operations. However, the company’s consolidated EBIDTA (earnings before interest, taxes, depreciation and amortization) margin improved to 1.3 per cent, contributed by JLR’s EBIDTA margin increase of 0.7 per cent.

The company’s standalone operations (India business) also saw a 26 per cent growth in revenues, leading to quarter-on-quarter (QoQ) EBIDTA margin expansion of 50bps to 4.5 per cent.

TMPV Share: Ray of hope

LR management has maintained its Ebit margin guidance of 0-2 per cent and free cash flow (FCF) guidance range of (minus) £2.2 billion to (plus) £2.5 billion.

Analysts are confident of a pick-up in Tata Motors PV’s India business due to the recent Goods and Services Tax (GST) cut and the recently launched products (Sierra, new Punch, petrol variants of Harrier/Safari) received good response. These signals are expected to increase margins.

By FY30, the company plans to expand its portfolio to 15 nameplates, including seven new products, namely the Sierra, Avinya range, two new ICE (Internal Combustion Engine) models and two new EVs.

Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. ET NOW Swadesh recommends its readers and viewers to consult their financial advisors before taking any money-related decisions.