Tata Motors Passenger Vehicles (TMPV) began the week on a weak note, with the stock falling as much as 6% on Monday after the company reported a disappointing Q2 FY26 performance. The decline was primarily driven by Jaguar Land Rover’s sharp deterioration in profitability, a steep cut in its full-year margin guidance, and the operational setback caused by the recent cyberattack.

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Q2 Snapshot: JLR Losses Mount, Margin Outlook Slashed Brokerage Views: Sentiment Cautious, Outlook Divided Goldman Sachs: Neutral | Target ₹365

At market open, Tata Motors PV shares were trading at ₹369, down 5.7% from Friday’s close of ₹391.2. Analysts said the correction reflects concerns over the depth of JLR’s disruption, the scale of the EBITDA loss, and a divided view on the company’s near-term recovery path. This was also the first quarterly result of Tata Motors PV as a standalone entity, coming at a time of muted global demand for premium vehicles.

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Q2 Snapshot: JLR Losses Mount, Margin Outlook Slashed

The quarter turned sharply weaker due to the steep decline in JLR’s performance.
Jaguar Land Rover cut its full-year EBIT margin guidance to 0–2% from 5–7%, and warned of a GBP 2.2–2.5 billion free cash outflow for FY26.

JLR reported:

GBP 485 million loss before tax and exceptional items
24.3% YoY revenue decline to GBP 24.9 billion
Negative margins as the cyber incident halted production in September

The cyberattack had a significant operational impact, worsening an already challenging quarter.

For the passenger vehicles business:

Adjusted for the CV demerger one-time gain, the PV division would have reported a ₹6,370-crore loss, compared to a ₹3,056-crore profit last year
Standalone TMPV posted an adjusted loss of ₹237 crore
Revenue rose 6% to ₹12,751 crore
EBITDA fell sharply to ₹303 crore from ₹717 crore
Margins shrank to 2.4%

The steep drop in EBITDA and margins highlighted the pressure on operating performance across the PV and JLR segments.

Brokerage Views: Sentiment Cautious, Outlook Divided

Top brokerages offered mixed reactions, with concerns largely centered around JLR’s performance and the impact of the cyberattack.

Jefferies: Underperform | Target ₹300

Jefferies believes the cyberattack will continue to affect Q3, with normalisation expected only in Q4. It flagged structural challenges at JLR including:

Intensifying competition
China’s consumption tax
Higher discounting
BEV transition pressures
An ageing model line-up

It added that India’s PV resilience is “not enough to offset JLR weakness.”

Goldman Sachs: Neutral | Target ₹365

Goldman Sachs stated that Q2 performance suffered due to a larger-than-estimated disruption at JLR, with revenue beating estimates but EBITDA missing sharply (+2% / -130% vs. forecast).

JLR now expects 30,000 units of lost production in Q3, higher than the 20,000 units lost in Q2.

CLSA: Outperform | Target ₹450

CLSA noted the JLR margin setback, with EBIT margin at –8.6% vs –2% expected, driven by the complete production halt in September. It highlighted:

October production at 17,000 units
India PV EBITDA margin at 5.8%

The firm remains constructive on the India PV business, citing benefits from GST cuts for small-to-mid SUVs, though it acknowledged JLR’s significantly lower FY26 margin guidance.

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Tata Motors Passenger Vehicles Ltd