June 17 (Reuters) - British luxury carmaker Jaguar Land Rover expects to report a profit margin of 4% for fiscal year 2027, signalling a slower-than-expected recovery and sending shares of its Indian parent, Tata Motors Passenger Vehicles, down.
Analysts attribute the weakness to the fallout from U.S. tariffs and last year's cyberattack, which caused the British firm's production to grind to a halt.
Tata Motors PV shares slid as much as 9.6% in India, on track for their biggest intraday drop in two
years.
"The drop may be because the announcement has not brought any near-term margin relief, as the U.S. tariffs, cyberattack impact keep the pressure on profitability," said Kranthi Bathini, director of equity strategy at Wealthmills Securities.
The British Range Rover manufacturer's broad medium-term forecast and weaker-than-expected margins for the year do not represent an immediate earnings upgrade, Bathini added.
JLR, which contributes 80% of Tata Motors PV's revenue, said it will continue to follow aggressive cost reduction plans while pivoting to the U.S. for growth as recovery in China remains uncertain.
The automaker cut its profit margin target to 5–7% from 10% last year. Its latest outlook marks a step-down from earlier ambitions.
The firm also forecast fiscal 2027 revenue of £26 billion ($34.86 billion), up from £23 billion in fiscal 2026 and said it is targeting double-digit revenue growth in the medium-term.
JLR reiterated plans to cut $2.3 billion in costs over two years while maintaining an 18-billion-pound investment plan from fiscal 2024.
($1 = 0.7458 pounds)
(Reporting by Urvi Dugar and Bharath Rajeswaran in Bengaluru; Editing by Harikrishnan Nair and Eileen Soreng)
