Explained - Why Tata Motors PV shares fell 9% on Wednesday

Shares of Tata Motors Passenger Vehicles Ltd. fell as much as 9% on Wednesday, June 17, as its unit Jaguar Land Rover released its outlook for financial year 2027, which was below what the street was expecting.

Jaguar Land Rover held its investor day on Wednesday, where it said that it is factoring in revenue growth of 13% for financial year 2027, while its EBIT margins are seen at 4% from just over 0% in the previous financial year. Analysts though, were expecting a figure higher than 4%.

Operating cash flow for the company is seeing breaking even in the current year, compared to a negative £2.3 billion last year.

For financial year 2027, JLR said that it is targeting medium-term double-digit revenue growth with an increased focus on North America.

JLR also reiterated its existing commitment to invest £18 billion by financial year 2029.

Tata Motors PV's luxury car unit said that it will focus on the Defender brand to deliver growth aspirations in the US market, and that Jaguar's new luxury four-door GT-Type 01 will be revealed later this year.

JLR's aspiration is to grow the US business to the size of the entire JLR business today, as highlighted by its management during the investor day, where it also said that it will continue to invest and grow in future high potential markets including India and West Asia.

The luxury car unit contributes to over 70% of the total revenue for Tata Motors Passenger Vehicles.

Earlier in the day, brokerage firm BofA Securities had reiterated its "underperform" rating on Tata Motors PV

with a price target of ₹335, implying a downside potential of 15% from current levels.

Shares of Tata Motors PV are trading 7.6% lower on Wednesday after the investor meet takeaways, now trading at ₹365.1. The stock has turned negative for the year after this fall.