Tata Motors drops 5% as JLR forecasts flat cashflow, lower FY26 margins

Tata Motors shares dropped by as much as 5.2% on Monday, touching ₹674.70 on the BSE, after its UK-based subsidiary Jaguar Land Rover (JLR) issued a subdued financial outlook for the current fiscal, raising investor concerns.

JLR now expects its EBIT margin for FY26 to be between 5% and 7%, a notable decline from the 8.5% margin recorded in the previous year. Additionally, the company forecasted free cash flow to be "close to zero" for the year, in sharp contrast to the strong £1.5 billion it generated last fiscal.