Tata Motors PV shares plunge 7% despite 2,110% profit surge
Shares of Tata Motors Passenger Vehicles (TMPV) fell over 7% on Monday, despite the company reporting a staggering 2,110% year-on-year jump in Q2 net profit. Analysts said concerns over Jaguar Land Rover’s (JLR) performance drove the sell-off.
TMPV’s profit surge was largely due to a one-time gain of ₹82,616 crore. Excluding this, the company actually posted a loss of ₹6,368 crore, while overall revenue fell 13.5% YoY to ₹72,349 crore, News.Az reports, citing foreign media.
JLR, hit by a major cyber incident and weak demand in key markets including China, the US, and Europe, swung to a £559 million quarterly loss and lowered its guidance for fiscal 2026. The division now expects a 0–2% operating margin and negative free cash flow of £2.2–2.5 billion.
Brokerages issued cautionary ratings: Motilal Oswal initiated TMPV with a ‘Sell’ rating, while Nuvama and ICICI Securities advised ‘Reduce’ or ‘Hold’, citing ongoing challenges at JLR despite stable domestic operations.
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