Tata Motors shares dip after JLR Q2 sales fall; should you buy, sell or hold?

Tata Motors Shares Today: Shares of Tata Motors Ltd fell as much as 1.3 per cent to Rs 688.9 in early trade on Wednesday, after its UK-based subsidiary Jaguar Land Rover (JLR) reported a significant drop in second-quarter sales. Over the past year, the stock has declined around 24 per cent, trading within a 52-week range of Rs 535.75 to Rs 948.45. Tata Motors currently offers a dividend yield of 0.86 per cent and trades at a price-to-earnings ratio of 9.77.

JLR Q2 sales impacted by cyber incident and model phase-out

JLR reported wholesale volumes of 66,165 units in Q2 FY26, down 24.2 per cent year-on-year, while retail sales fell 17.1 per cent to 85,495 units. Production disruptions following a cyber incident in September, combined with the phase-out of older Jaguar models and incremental US tariffs, weighed on overall sales.

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Despite the decline, Range Rover, Range Rover Sport, and Defender models accounted for nearly 77 per cent of wholesales, highlighting the company’s focus on high-margin vehicles. CEO Adrian Mardell confirmed a phased restart of manufacturing operations and said the recovery is firmly underway.

Brokerage view on Tata Motors

Nuvama expects JLR’s revenue and EBITDA to fall by 22 per cent and 52 per cent, respectively, in Q2. Nomura maintains a neutral rating with a target price of Rs 732, forecasting JLR EBIT margins around 0.9 per cent for the quarter. Volume disruptions could reduce free cash flow by GBP 750 million, though recovery is expected as production resumes. Tata Motors currently trades at 4.9x FY27F EV/EBITDA.

Operations gradually resuming in the UK

From October 8, JLR has restarted operations at several UK sites and introduced new financing solutions to ensure timely payments to suppliers. Management is confident that the production ramp-up, along with focus on profitable models, will help sustain performance.