Shares of Tata Motors Passenger Vehicles (TMPV) slumped as much as 10% to an intraday low of Rs 355 on Wednesday and eventually settled 8% lower after Jaguar Land Rover (JLR) unveiled its FY27 outlook at its investor day, with profitability guidance falling short of Street expectations.
During the event, JLR projected revenue growth of 13% to £26 billion for FY27 and guided for EBIT margins of 4%, compared with just over 0% in the previous financial year. While the guidance points to an improvement in profitability, analysts had been expecting margins above the 4% mark.
The company also expects operating cash flow to break even in the current financial year, an improvement from the negative £2.3 billion recorded last year.
North American focus
Looking ahead, JLR said it is targeting medium-term double-digit revenue growth, with North America remaining a key focus area. To truly manifest the power of our brands, we will increase our focus on North America, our biggest market. The rising demand for luxury products, coupled with the strong preference we see for our brands, signals significant growth potential,” the management said in a press release.
Apart from accelerating our existing offerings, we are also exploring new high-potential segments for our Defender brand, which will allow us to offer tailored luxury products and experiences for even more of our US clients. Our aspiration, in the coming years, is to grow our US business to the size of the entire JLR business as it exists today, Tata Motors PV's arm added.
At the same time, the company intends to continue investing in other high-potential markets, including India and West Asia.
JLR remains the dominant contributor to Tata Motors Passenger Vehicles' business, accounting for more than 70% of total revenue.
JLR's performance has been weighed down by tariffs introduced during the Donald Trump administration, particularly because the company lacks manufacturing facilities in the United States for its key Defender and Range Rover models. Alongside trade-related challenges, JLR continues to navigate the impact of a cyberattack, a supplier fire and broader uncertainty across the global automotive industry.
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The company maintained its planned investment of £18 billion announced from fiscal 2024 onwards.
Tata Motors PV Q4 snapshot
Tata Motors Passenger Vehicles (TMPV) had reported a 32% year-on-year (YoY) decline in its consolidated net profit at Rs 5,783 crore. The company's board has recommended a final dividend of Rs 3 per share for the financial year ended March 2026.
Revenue from operations increased 7% YoY to Rs 1.05 lakh crore in the March quarter. EBITDA margin for the quarter stood at 9.4%.
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