Tata Motors Passenger Vehicles Ltd. share price target

We attended TTMT’s analyst meet to discuss the upcoming demerger, the IVECO acquisition (refer to our note), updates on JLR after the recent cyber-attack.

*over or under performance to benchmark index In Q1FY26, Tata Motors' revenue decreased 2.5% YoY to Rs. 104,407cr, primarily The JLR division's revenue was down 1.2% YoY to Rs. 75,952cr, driven by a 11.3% YoY decrease in volume of Range Rover and Jaguar wholesale by 71.6% YoY, as the 27.5% US trade tariff imposed on UK/EU-produced vehicles and the planned...

Management guides for single-digit growth in FY26E for PV/CV, with Q2FY26E recovery on a low base. PV growth is expected to remain in the range of ~1.0–2.0% in FY26E amid muted sentiment, with Altroz/Tiago refresh aiding hatch share recovery, and Sierra EV/Harrier EV launches boosting UV positioning.

Tata Motors’ consolidated EBITDA margin of 9.2% in 1QFY26 came in below our estimate of 10.9% due to weaker-than-expected performance at JLR and India PVs.

Tata Motors has struck a landmark deal to acquire Iveco Group N.V., aiming to establish a top-tier global player in the commercial vehicles sector.

Tata Motors JLR reported Q1FY26 wholesale volumes of 87,286 units, a 10.7% decrease YoY and 21.7% down from Q4FY25, reflecting the planned wind down of legacy Jaguar models and US import tariffs.

We attended JLR’s Annual Investor Day meet to understand its outlook and growth strategy. JLR gave guidance for £28bn revenue with 5-7% EBIT margin in FY26 (vs earlier guidance of 10%; FY25: 8.5%); it maintained its interim/long-term guidance of 10%/15%, led by sustained focus on premiumization (growing share of higher-priced models), pricing discipline, and structural cost reduction.

We attended Tata Motors’ (TTMT) virtual analyst meet for its JLR business. JLR continues to face several headwinds, such as tariff wars and resultant USD depreciation vs. GBP, uncertainty over EV transition, challenging market conditions in China, and rising warranty costs.

We attended Tata Motors’ (TTMT) analyst meet for India business. TTMT expects CV industry volumes to grow at a slower CAGR of 3-5% over the next five years relative to average freight demand CAGR of 5-7% due to the impact of dedicated freight corridors (DFCs).

We attended Tata Motors’ (TTMT) analyst meet. For its JLR business, the US continues to do well alongside recovery green shoots in the EU market. TTMT maintained its EBIT margin guidance of 10% for Q4FY25.

TTMT’s Q3 performance was below expectations driven by sequential ASP decline at JLR and standalone operations, as well as lower than expected margin expansion in JLR (JLR margin up by 244bps QoQ to 14.2%, consolidated margin stable at 11.5%)

JLR has maintained its full-year guidance despite subdued performance in Q2FY2025.

JLR reported a 10% y-o-y decline in volumes in Q2FY2025 due to production constraint.

JLR reported ~10% drop in Q2 wholesales at 87K units amid issues at a key aluminum vendor; however, it expects production and wholesales to grow strongly in H2 amid supply normalization.

Supply-side issues limit wholesales; retails (including JV) decline 3% YoY

We upgrade TTMT to BUY from Add, keeping our SoTP-based TP unchanged at Rs1,175/sh (incl. roll-over to Sep-26E). TTMT stock price has corrected 16% from its peak, amid outlook downgrade at peer BMW.