Tata Motors Passenger Vehicles Limited: JLR Analyst Day: Guide underwhelms but NA pivot, new launches promising

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Tata Motors Passenger Vehicles Limited: JLR Analyst Day: Guide underwhelms but NA pivot, new launches promising

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Tata Motors Passenger Vehicles Limited

JLR Analyst Day: Guide underwhelms but

NA pivot, new launches promising

Reiterate Rating: UNDERPERFORM | PO: 335.00 INR | Price: 360.00 INR

F27 guide modest: EBITm 4% & FCF neutral 17 June 2026

In the analyst meet today, JLR laid out F27 guidance viz. 1. Revenues of £26bn, +12% Equity

Y/Y; 2. EBIT margin of 4% vs. 0.7% in F26 & BofAe ~5%, 3. FCF break-even, in line with

Gunjan Prithyani >>

our expectations. Overall, guidance on margins lagged street expectations which had Research Analyst

turned quite optimistic post Q4 strong delivery. No JLR specific guidance was given for BofAS India gunjan.prithyani@bofa.com

F28 and mgt noted that guidance going ahead will be on consolidated basis as part of

Eshan Bhargava >>

TMPV. JLR brand appeal is undoubtedly enviable, but macros headwinds & aging product Research Analyst

cycle continue to weigh down near term. F27 margin guide underscores structural drags BofAS India eshan.bhargava@bofa.com

we called out in our note (see here): yesterday (tariffs, warranty, incentives) & glide back

to 7-8% margin will hinge on delivery of cost out program which aims to reset breakeven

vols lower to 300K & saving of £1.7bn. Looking beyond the guide, Investor Day reaffirmed

mid term strategy of “house of brands” with focus on elevating brand, better realization, Stock Data

scale up NA & flexible powertrains. Target double digit revenue CAGR over mid term. Price 360.00 INR

Investment commitment of £18B over 5 years (3.7B in F27) were reiterated esp. as Price Objective 335.00 INR

there is need to invest in multiple powertrains. We reiterate our Underperform rating.