Tata Motors Passenger Vehicles (TMPV IN) (Neutral) - JLR’s FY27 guidance slightly below our estimates

研报英文原文证据摘录

Tata Motors Passenger Vehicles (TMPV IN) (Neutral) - JLR’s FY27 guidance slightly below our estimates

Global Markets Research

Tata Motors Passenger Vehicles TAMO.NS TMPV IN 17 June 2026

EQUITY: AUTOS & AUTO PARTS

RatingJLR’s FY27 guidance slightly below our estimates Remains Neutral

Target pricePlans double-digit revenue growth over next few years; Remains INR 373

expects 4% FY27E EBIT margin, FCF breakeven

Closing price

17 June 2026 INR 361WeattendedJaguarLandRover’s(JLR)InvestorDay2026,wheremanagement

highlighteditsFY27targets.Keytakeawaysarebelow:

Implied upside +3.3%FY27E guidance below our expectations (Fig.1): JLR expects FY27E revenue at

GBP26bn (Nom: GBP26.8bn), and EBIT margin at 4.0% (Nom: 4.4%). The company Market Cap (USD mn) 14,061.3

plans FCF breakeven in FY27E (Nom: positive GBP622mn). While annual revenue for ADT (USD mn) 43.1

FY27E is just 5% below the 4QFY26 run-rate, FY27E EBIT margin guidance is much

lower (4QFY26: 9.4% including ~200bp emission cost reversal). TMPV will provide long-

term guidance on a consolidated basis at the TMPV Investor Day on 24 June. Relative performance chart

Cost saving of GBP1.7bn over two years: Aims for cash break-even volume of ~300k

(from 350k in FY26). The key lever is warranty cost reduction of GBP100mn in FY27E.

Five new launches in the next 18 months: These include RR Electric in 3QFY27 (78k

EoIs), Jaguar Type 01 (46k EoIs), RR Sport Electric and two more products under EMA.

Growth pivot to North America (28% of volume): The US market has strong potential

with wealth creation and 44% of demand above USD50k. The company is exploring a

partnership with Stellantis (STLA US, Buy) for Defender products for the US. In the long run,

JLR’s US volumes have potential to be as big as entire JLR today.