Tata Motors Shares Plunge 5% After JLR’s Muted FY2026 Outlook

s shares experienced a sharp decline of 5 per cent on Monday following a muted outlook for FY2026 from its UK subsidiary, Jaguar Land Rover (JLR). The stock opened flat on the National Stock Exchange (NSE) at ₹711, compared to its previous close of ₹712.05. However, intense selling pressure dragged the stock to a daily low of ₹672.95. As of 10:30 AM, Tata Motors was trading near its day's low at ₹679 on the NSE and ₹680 on the Bombay Stock Exchange (BSE), making it the top loser in both the BSE Sensex and Nifty 50 indices. The sell-off was triggered by JLR’s announcement of a projected EBIT margin for FY2026 in the range of 5 to 7 per cent, a significant drop from the 8.5 per cent reported in FY2025. Tata Motors disclosed this outlook in an exchange filing, citing challenges in the luxury automotive market as a key factor impacting JLR’s performance. Analysts attribute the market's reaction to concerns over JLR’s profitability, given its substantial contribution to Tata Motors’ revenue. Investors are now closely monitoring the company’s strategies to navigate the anticipated headwinds in the coming fiscal year.