(Reuters) -Shares of India’s Tata Motors Passenger Vehicles fell as much as 7.2% on Monday to a seven-month low, as the carmaker cut its fiscal 2026 margin goal for Jaguar Land Rover after a cyberattack, sparking concerns over volume growth.
The stock was the top loser on the benchmark Nifty 50 index, which was up 0.15%. Its historical price has been adjusted for the spin-off of the commercial vehicle business, which got listed last week.
JLR, which generates most of Tata Motors’ profits, is grappling with falling demand for premium cars in China and component shortages. A cyberattack in early September halted production for five weeks and forced its parent to take a one-time charge of $228.5 million in the second quarter.
Jefferies said even better-paced India growth wouldn’t be able to offset multiple headwinds for the luxury automaker, which include increased competition and consumption tax in China, high discounts and the transition to EVs.
Tata Motors Passenger Vehicles on Friday reported a 22-fold surge in quarterly net profit thanks to an 826 billion rupee ($9.3 billion) demerger gain. Excluding the gain, the company reported a 6.37 billion rupee loss, weighed down by a sharp drop in JLR volumes.
The Defender maker expects an operating margin of 0% to 2% in fiscal 2026, down from an earlier 5% to 7% target, having already pared its outlook this year amid tariff-related uncertainty.
J.P. Morgan said it expects “material cuts to consensus forecasts due to these results” after the brokerage expected a weak quarter.
The shares were down 3.7% at 377.20 rupees at 10:19 IST.
($1 = 88.7090 Indian rupees)
(Reporting by Urvi Dugar in Bengaluru; Editing by Mrigank Dhaniwala)
