Tata Motors Passenger Vehicles (TMPV) shares came under pressure on Friday, falling as much as 5.18% to hit an intraday low of Rs 330 per share after the company reported a sharp decline in profit for the June quarter of FY27. Brokerages remained cautious on near-term margins, with Citi cutting its target price while Macquarie retained its bullish stance.
At 9:56 am, Tata Motors PV shares were trading 4.51% lower at Rs 332.35, while the BSE Sensex was down 0.28% at around 77,864.
ALSO READ: Tata Motors PV Q1 Results: Profit Slumps 80% Even As Revenue Rises To Nearly Rs 96,000 Crore
The automaker's consolidated net profit plunged 80.3% year-on-year (YoY) to Rs 775 crore in Q1FY27 from Rs 3,924 crore in Q1FY26.
Revenue, however, rose 9.3% YoY to Rs 95,799 crore in Q1FY27, compared with Rs 87,677 crore a year ago.
Operating performance remained under pressure, with earnings before interest, tax, depreciation and amortisation (EBITDA) declining 17.2% YoY to Rs 6,326 crore from Rs 7,639 crore in the year-ago quarter.
Consequently, EBITDA margin contracted sharply to 6.6% in Q1FY27 from 8.7% in Q1FY26.
Macquarie On Tata Motors PV
Macquarie maintained its ‘Outperform' rating on Tata Motors PV with a target price of Rs 381.
The brokerage said margins were disappointing and near-term risks persist. It noted that India margins disappointed, while JLR performance was broadly in line with muted expectations.
Macquarie remains upbeat on domestic growth, supported by underlying demand, but flagged margin risks going ahead.
Citi On Tata Motors PV
Citi maintained its ‘Sell' rating but cut its target price to Rs 305 from Rs 320, citing results that were considerably below estimates and persistent margin headwinds.
The brokerage highlighted margin concerns across both businesses. While management's outlook for India remains positive on healthy underlying demand, Citi expects continued commodity cost increases to keep Q2 margins broadly in line with Q1 levels.
ALSO READ: Tata Motors PV Signals More Price Hikes As Commodity Costs Rise Further
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