Tata Motors Passenger Vehicles shares witnessed a sharp sell-off on Wednesday, plunging nearly 10 percent and emerging as one of the biggest losers on the Nifty 50 index. The decline came after Jaguar Land Rover (JLR) shared a cautious outlook for FY27, raising concerns among investors about future profitability and growth prospects.
The stock dropped as much as 9.7 percent during intraday trade, falling to Rs 355 from its opening price of Rs 395.50. At around 2:54 PM, shares were trading at Rs 359.80, down 8.59 percent or Rs 33.80 per share.
Investor sentiment weakened after JLR management projected modest financial performance for FY27. The company expects revenue growth of around 13 percent, while earnings before interest and taxes (EBIT) margin is estimated at only 4 percent. Additionally, JLR expects operating cash flow to merely break even in FY27, compared to a negative £2.3 billion in FY26.
The cautious guidance disappointed market participants who were anticipating stronger profitability and cash flow improvement from the luxury vehicle business. Since Jaguar Land Rover remains a key earnings contributor for Tata Motors, any slowdown in its performance directly impacts investor confidence.
The sharp correction also pushed the stock further away from its 52-week high of Rs 419. Despite opening in positive territory, heavy selling pressure throughout the trading session dragged the share price close to its day’s low.
Tata Motors Passenger Vehicles currently has a market capitalisation of approximately Rs 1.46 lakh crore. Analysts believe future stock performance will largely depend on JLR’s ability to improve margins, strengthen cash flows and navigate global demand challenges in the luxury automobile segment.
The market will now closely monitor upcoming quarterly results and management updates for clearer indications of the company’s growth trajectory and profitability outlook.