Tata Motors shares slip over 5% as firm lowers JLR's EBIT margin guidance for FY26; check details

The auto major said it expects fiscal 2026 earnings before interest and taxes margins (EBIT margins) of 5% to 7% for its British luxury carmaker Jaguar Land Rover (JLR), lower than an initially targeted 10%, as the tariffs by the US on auto imports have put the global automotive industry under pressure.

The stock slipped as much as 5.28% to ₹674.45 on the NSE.

EBIT, or earnings before interest and taxes, is a financial metric that represents a company's profitability before accounting for interest and income tax expenses.

Tata Motors: Recent developments

Tata Motors expects to maintain low single-digit growth in passenger vehicle sales this fiscal year in line with the overall industry estimate, with the company betting on premium hatchback sales to bounce back with the introduction of its all-new version of Altroz, a top company official said in May 2025.

The company is looking to regain 25% share in the premium hatchback segment, having seen it fall in the last one and a half years, Tata Motors Passenger Vehicle Ltd and Tata Passenger Electric Mobility Ltd Managing Director Shailesh Chandra told PTI in an interview.

However, it has paused plans to introduce an electric version of the premium hatchback Altroz due to overcrowding in the price segment in which it was envisaged to be positioned, he said.

The all-new Altroz has been launched with introductory prices ranging from ₹6.89 lakh to ₹11.29 lakh across petrol, CNG and diesel variants.

Tata Motors May 2025 Sales

Tata Motors reported a 9% year-on-year decline in total sales at 70,187 units in May.

The Mumbai-based auto major had reported total sales of 76,766 units in May 2024.

Domestic sales declined 10% year-on-year to 67,429 units, as compared to 75,173 units in the year-ago period, Tata Motors said in a statement.

Total passenger vehicle sales declined 11% year-on-year to 42,040 units in May.

Commercial vehicle sales stood at 28,147 units, as compared to 29,691 units, a dip of 5%.