Tata Motors PV shares gain: Check what Morgan Stanley, Nomura, Jefferies analysts said on FY27 outlook  

At 10:45 AM, the stock was trading at ₹361.95 apiece on the National Stock Exchange, rising 0.28%.

In an investors’ presentation, Tata Motors PV said for FY27 it indicates an EBIT margin of around 4%, compared with over 0% in FY26. Revenue is projected at £26 billion for FY27, up from £23 billion in FY26.

The company’s investment is estimated at £3.7 billion in FY27 as against £3.6 billion in FY26. Its operating cash flow is expected to reach breakeven in FY27, compared with negative £2.3 billion in FY26.

Tata Motors PV’s wholly owned subsidiary Jaguar Land Rover Automotive said that it has plans to unlock double-digit revenue growth by giving markets and customers more choice through greater propulsion flexibility on its Range Rover and Defender models and refocusing its strategic intent on the North American market.

Here’s what analysts said on the outlook

Goldman Sachs

• FY27 EBIT margin is guided at ~4%, compared with 8.5% in FY25 and below the broker’s estimate of 5.6%.

• FY27 free cash flow is projected to be near zero, missing the broker’s expectation of positive cash flow and the £1.5 billion reported in FY25

• The guidance falls short of both internal estimates and Bloomberg consensus expectations, which had increased following a strong Q4FY26 margin performance.

• Q4FY26 reported an EBIT margin of 9.2% and free cash flow of £829 million, making the FY27 outlook a notable step-down

• Earnings estimates for FY27 to FY29 have been revised downward, reflecting the conservative margin and cash flow guidance.

Morgan Stanley

• FY27 revenue guidance of £26 billion is around 5% above analyst estimates, while EBIT margin guidance of 4% is below the 4.6% projection.

• The EBIT target of £1,040 million is broadly in line with the forecast of £1,130 million.

• FY27 free cash flow guidance of break-even is a key downside relative to the expected positive £400 million.

• The company is targeting mid-term double-digit revenue growth, supported by premiumisation, bespoke offerings, and expansion of non-vehicle revenue streams.

• North America accounted for 28% of FY26 volumes and is identified as a core growth market with the potential to scale significantly.

• The company is targeting a break-even volume of 300,000 units within two years (vs 345,000 units in FY26), along with £1.7 billion in cost savings through enterprise initiatives.

• Management is expected to provide long-term targets for FY29 and FY31 at the Indian Investor Day on June 23.

Nomura

• JLR’s FY27 guidance is slightly below estimates

• The company plans to deliver double-digit revenue growth over the next few years

• At 3.5x FY28F EV/EBITDA, the current valuation appears undemanding, though it remains balanced against associated risk

CITI

• FY27 guidance shared by JLR management at the 2026 Investor Day indicates £26 billion in revenue, an EBIT margin of around 4%, investments of £3.7 billion, and free cash flow at break-even.

• Management indicated that longer-term guidance will be provided alongside the India PV business during the TMPV (India) Investor Day on June 23.

Jefferies

• JLR has provided FY27 guidance of £26 billion in revenue and an EBIT margin of around 4%, both in line with Jefferies estimates, while free cash flow is expected to be at break-even (Jefferies estimate: -£0.2 billion FCFE)

• The company plans to begin launching new EVs from 2026 and aims to reduce its break-even volume from 425,000 units to 300,000 units

• Key headwinds include rising competition, elevated discounts and warranty costs, higher CWIP (capital work and product development in progress), and an ageing product portfolio.

Here’s what management said

"As we enter a critical business delivery phase of our Reimagine strategy, launching five new products over the next two years across our incredible House of Brands, now is also the time to evolve our plan to offer global markets greater propulsion choice to unlock growth and build resilience,” said JLR CEO PB Balaji.

“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,” he added.

Balaji further said that, alongside accelerating existing offerings, the company is exploring new high-potential segments for the Defender brand to deliver more tailored luxury products and experiences to its US clients, adding that it aims to grow its US business over the coming years to match the size of the entire JLR business today.

 According to NSE, the company has a market capitalisation of ₹1.33 lakh crore as of June 18, 2026.