Tata Motors Passenger Vehicles (TMPV) shares rallied over 8 per cent after March quarter earnings highlighted strong momentum in its India passenger vehicle business, helping offset investor concerns around weakness at Jaguar Land Rover (JLR).

The stock traded at ₹354.40 on the NSE, up over 5 per cent at 9.53 am, after hitting a high of ₹366.95 from the previous close of ₹338.75.

The stock reaction was driven by record domestic PV sales, improving margins across businesses and management’s confident FY27 demand outlook, despite a sharp decline in consolidated profit and continued uncertainty around JLR’s global operations.

Tata Motors reported a 7.2 per cent y-o-y rise in consolidated revenue to ₹1.05 lakh crore in Q4FY26 from ₹98,355 crore a year earlier. However, consolidated net profit fell 31.7 per cent to ₹5,783 crore from ₹8,470 crore and missed Street expectations as JLR faced lower volumes and tariff-related pressures.

The March quarter performance underscored a widening divergence within the company. While weakness in the global luxury vehicle business weighed on earnings, the India passenger vehicle division delivered record quarterly sales and stronger profitability, reinforcing its position as Tata Motors’ fastest-growing earnings engine.

Brokerages remained divided on the stock outlook following the results.

Macquarie maintained a neutral rating on Tata Motors PV with a target price of ₹367, saying margins improved across businesses and the domestic growth outlook remained positive. The brokerage added that the margin surprise could support near-term stock performance, though margin risks continue to persist.

Jefferies maintained an underperform rating and cut its target price to ₹300 from ₹310. The brokerage noted that EBITDA improved sharply q-o-q and JLR margins came in ahead of estimates, while the impact of the cyberattack appeared to be behind the company. However, Jefferies flagged concerns around JLR headwinds, including rising competition in China, higher discounting and ageing product models. It added that while the India PV business is performing well, it may not fully offset weakness at JLR.

Citi maintained a sell rating and reduced its target price to ₹330 from ₹345. The brokerage said Q4 results were ahead of estimates and domestic PV demand remained healthy, with industry volume growth guidance at 10 per cent y-o-y. However, Citi cautioned that the sustainability of JLR margins remains uncertain and noted that hedging gains supported the EBITDA beat.

Elara Capital retained its reduce rating and cut its target price to ₹354 from ₹363. The brokerage said the domestic demand outlook remains strong and market share gains could continue in FY27, but elevated raw material prices may pressure margins. It also highlighted concerns around elevated VME at JLR amid weakening global demand and said management commentary in June would be closely monitored.

Published on May 15, 2026