Tata Motors shares dropped a lot on Monday, 16th June. Tata Motors shares fell as much as 5.4% in early trading after its luxury car brand, Jaguar Land Rover (JLR), gave an update, Jaguar Land Rover (JLR), which is based in the UK, gave a financial forecast for FY26 that was weaker than what people were expecting, This created negative feelings among investors, especially because of the rising global tensions and the risk of new US tariffs on imported cars.
Today’s Tata Motors Share Price
The stock started lower on the NSE at Rs 711 and during the day it fell to as low as Rs 672.95, which is more than 5.4% down from the closing price on Friday. In the last six months, Tata Motors shares have dropped by 13%, and over the past 12 months, they have fallen by around 30%. The Tata Group stock has now gone down by 42% compared to its highest level in the last 52 weeks. As of June 16, the current market capitalisation of Tata Motors is Rs. 2.52 lakh crore.
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Jaguar Land Rover’s FY26 Profit Warning Shakes Markets
The fall in the stock price happened because Jaguar Land Rover gave its earnings guidance for FY26. The company expects its EBIT (Earnings Before Interest and Taxes) margins to come down to somewhere between 5% and 7%, This is much lower than the earlier target of 10% margin, according to reports. To give some background, JLR had an EBIT margin of 8.5% in FY25, so the new forecast shows a big drop compared to that.
Tata Motors’ management said the lower forecast is because of rising input costs, continued chip shortages, and tough economic conditions in important markets like the US and Europe.
But experts believe the main challenge is the high import tariffs imposed by the US. These tariffs could directly affect the luxury carmaker’s export profits and reduce demand for their cars.
Tata Motors Share Price Target: What Experts Are Saying
An analyst from Kotak Institutional Equities has kept a SELL rating on Tata Motors stock and set a fair value target of Rs. 600. In their report, Kotak said, “We generally keep our consolidated estimates for FY2026-27 unchanged. But the risks from US tariffs could seriously hurt the company’s financials, and we think these risks are not fully reflected in the current stock price. Kotak also raised worries about Tata Motors’ domestic business not doing well, citing weak demand and increasing input costs as the main reasons.
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Motilal Oswal Financial Services has a more neutral view, giving a target price of Rs. 690, which means the stock could fall by about 4% from the current price of Rs. 718, The brokerage pointed out that although Tata Motors has set big goals for its Commercial Vehicles and Passenger Vehicles divisions, actually achieving them will be a major challenge
Especially because demand is low in both Commercial Vehicles (CVs) and Passenger Vehicles (PVs), and the company is facing increasing cost pressures. The brokerage firm noted that because of these problems, Tata Motors’ plans to increase market share and improve profit margins will be hard to accomplish in the short term.
Tata Motors Q4 FY25: Profit Declines 51% Year-on-Year
On May 13th this year, Tata Motors announced a big 51% drop in its consolidated net profit for the fourth quarter ending March 2025. The earnings fell to Rs. 8,470 crore, down from Rs. 17,407 crore in the same quarter last year.
Even with the big fall in net profit, Tata Motors’ consolidated revenue from operations went up slightly by 0.4%, reaching Rs 1,19,503 crore compared to Rs 1,19,033 crore in Q4 FY24. The company also showed a drop in total expenses for the quarter, which were Rs. 1,09,056 crore, down from Rs. 1,11,136 crore in the same period last year. The low profits are mainly because of weak performance from its UK-based subsidiary Jaguar Land Rover (JLR) and increasing cost pressures in different parts of the business.