Tata Motors share price hit a one-month low, falling by over 5% to Rs 672.95, the lowest level since May 9.
The company signaled that free cash flow for the year is expected to be close to zero, leading to concerns about profitability and cash generation in the near term.
Jaguar Land Rover (JLR) shared a muted outlook for the fiscal year and reduced its EBIT margin guidance to 5–7% from the previous 10% expectation.
Challenges in the China premium passenger vehicle market, including intense competition and aggressive discounting, have impacted JLR's performance, leading to a downward revision in volumes and margins.
Tata Motors aims for JLR's year-on-year improvement in financial years 2027 and 2028, supported by investments and operational streamlining.
The company plans significant capital expenditure of approximately Rs 2.09 lakh crore between fiscal 2024 and fiscal 2028 to support its investment roadmap.
To counter challenges, Tata Motors reaffirmed commitment to its Enterprise Mission to deliver annual efficiencies and aims to bring JLR back to a 10% EBIT margin target gradually.
JLR is preparing for the launch of the first model under the Freelander brand in the second half of the fiscal year ending March 2026.
Tata Motors shares also saw a decrease in analyst ratings, with 18 'buy,' 11 'hold,' and 6 'sell' recommendations out of 35 analysts.
The average 12-month consensus price target suggests a downside/upside of 10.9% for Tata Motors.
The company's shares have fallen 31.32% in the last 12 months and 7.82% year-to-date, with trading volume at 1.2 times the 30-day average.