- Jefferies cut Tata Motors PV target price after weak Q3 earnings and JLR sales drop
- Tata Motors reported a consolidated net loss of Rs 3,483 crore in Q3 FY26
- Exceptional items of Rs 1,600 crore related to JLR cyber incident and new costs affected results
Jefferies has cut the target price on Tata Motors Passenger Vehicle Ltd. after the Indian automaker reported its third-quarter earnings for the financial year ending March 2026. The brokerage firm has cited a weak quarter for Tata Motors PV, largely driven by a major slowdown in Jaguar Land Rover (JLR) sales.
Tata Motors reported its Q3 earnings on Thursday, with the company posting a consolidated net loss of Rs 3,483 crore. This compares to a consolidated net profit of Rs 5,485 crore in the corresponding quarter of the last fiscal, Tata Motors confirmed in an exchange filing.
The company said it incurred exceptional items of Rs 1,600 crore for Q3 FY26 pertaining to the JLR cyber incident, new labour code and stamp duty of Rs 800 crore, Rs 400 crore and Rs 400 crore, respectively.
The performance continued to be impacted significantly by the cyber incident at JLR, as indicated earlier. The domestic performance improved quarter-on-quarter (QoQ) on account of higher volumes and incentives, TMPVL said.
In light of its earnings, Jefferies noted that while JLR's outlook remains bleak, Tata Motors PV's domestic business looks strong. The firm is also expecting a better Q4FY26 for JLR as the cyberattack impact normalises.
Crucially, Jefferies noted that the key models of Tata Motors are 'starting to age' and while the domestic business is better placed, it is unlikely to offset the JLR drag.
Moreover, the firm sees multiple headwinds, including increased competition and consumption tax in China, high discounts & warranty costs, and the BEV transition.
Keeping these factors in mind, Jefferies has maintained an 'underperform' rating on Tata Motors PV but has hiked target price marginally, from Rs 300 to Rs 310.
READ MORE: Tata Motors Passenger Vehicles Posts Net Loss of Rs 3,483 Crore in Q3
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