Tata Motors PV Shares Fall 4.5% After Q1 Profit Plunges 80%

Shares of Tata Motors Passenger Vehicles Ltd declined 4.5% in early trading on Friday, making it the biggest loser on the Nifty 50 after the company reported a sharp decline in Q1 FY27 profit and continued pressure on margins.

The stock traded near Rs 334 after closing at Rs 349.60 on Thursday. It has fallen around 9% so far in 2026, compared with a 6.7% decline in the benchmark Nifty 50.

Tata Motors PV reported an 80% year-on-year decline in consolidated net profit attributable to shareholders to Rs 775 crore. Revenue from operations, however, increased 9.2% to Rs 95,799 crore. Profit before exceptional items and tax fell 59% to Rs 1,606 crore.

The company's domestic passenger vehicle business recorded 65% revenue growth, but higher commodity costs and foreign-exchange movements weighed on profitability. Consolidated free cash flow stood at negative Rs 11,800 crore, primarily due to seasonal working-capital requirements.

Brokerages differ on Tata Motors PV outlook

According to a Moneycontrol report, CLSA remained positive, retaining its ‘Outperform’ rating and a target price of Rs 452, which implies more than 29% potential upside.

It noted that JLR’s EBIT margin was better than expected, although domestic PV EBITDA missed estimates. CLSA also highlighted management’s confidence in achieving JLR’s FY27 margin and free-cash-flow targets.

On the domestic front, management expects demand to remain strong, with monthly dispatches of 65,000-70,000 units expected over the coming months as inventory builds ahead of the festive season.

Nomura maintained a ‘Neutral’ rating with a Rs 389 target, citing strong Indian demand but significant cost pressures. HSBC retained its ‘Hold’ call while reducing its target to Rs 360, warning that commodity-related margin pressure could continue into Q2.

Citi was more bearish, retaining its ‘Sell’ rating with a Rs 305 target. It said Q1 performance was substantially below expectations across both JLR and the India PV business.

JLR wholesales declined 9.2% due to supply disruptions, the Middle East conflict and the planned Jaguar wind-down. However, management maintained its outlook for strong domestic volume growth and double-digit JLR revenue growth, supported by upcoming model launches.