Why are Tata Motors shares falling nearly 5% today? Know More
By Aditya Bhagchandani Published on June 16, 2025, 09:42 IST
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.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
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Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
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