TMPV shares fall nearly 6% as JLR weakness and margin concerns weigh, brokerages divided

JLR maintains its target of achieving double-digit revenue growth over the next five years.

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TMPV shares declined nearly 6 per cent in early trade, leading the losers on the Nifty 50, after the automaker reported an 80.3 per cent year-on-year fall in consolidated net profit in the June quarter to ₹775 crore. Weaker profitability at Jaguar Land Rover (JLR) and rising commodity costs hurt the company’s earnings.At around 9.34 am, the stock traded 4 per cent lower at ₹333.40 after hitting a low of ₹329 from the previous close of ₹349.60.The company’s upcoming launch cycle remains strong, beginning with the Range Rover Electric launch in Sep’26, followed by RRS Electric, RR GT and finally the Jag Type 01.JLR maintains its target of achieving double-digit revenue growth over the next five years. The strategy is centred around greater propulsion flexibility, strengthening its premium positioning and increasing strategic focus on North America.JLR expects the transition to higher EV sales to be margin-neutral or potentially margin-accretive. New EMA vehicles are expected to replace end-of-life models that currently generate lower margins, supporting overall profitability.JLR maintained its FY27 guidance despite the weaker-than-anticipated Q1 show. However, the company acknowledged that execution pace needs to be accelerated through the remainder of the year to offset the Q1 shortfall.The India PV business is expected to grow at a high double-digit pace and approximately twice the industry growth rate. India business exports are expected to grow 100 per cent in FY27 as international expansion progresses.Brokerages dividedMacquarie maintained its outperform rating with a target price of ₹381. It said margins disappointed and near-term risks persist. It remained upbeat on domestic growth while noting that margin risk persists.CLSA retained its outperform rating with a target price of ₹452. It said JLR reported an EBIT margin of 2.8 per cent in 1QFY27, 90 basis points above its estimate, while the domestic passenger vehicle EBIT margin of 4.3 per cent was 250 basis points below its estimate.CLSA also noted that JLR’s FCF outflow stood at £1.0bn during 1QFY27. Management reiterated confidence in achieving its FY27 guidance of a c.4 per cent EBIT margin and breakeven FCF, supported by upcoming product launches, a sharper focus on the North American market and ongoing cost-reduction initiatives.Nomura retained its neutral rating with a target price of ₹389. It said India PV has strong demand but steep cost pressure, while the success of new JLR launches is a key monitorable. Nomura said the China outlook is challenging but the US market has promise. It noted that the stock is trading at 3.8x FY28F EV/EBITDA, which it believes is undemanding but fair considering the risks.HSBC retained its hold rating and cut its target price to ₹360. It said domestic demand momentum was eclipsed by the margin hit from commodity headwinds in Q1, which will likely continue in Q2. In JLR, HSBC said structural recovery depends on new model launches as the existing portfolio has aged.Citi maintained its sell rating and cut its target price to ₹305 from ₹320. It said Q1 results were much below estimates and margin headwinds persist, with margin concerns for both businesses. Citi said the management outlook is positive for India given healthy underlying demand, but due to continued increases in commodity costs, Q2 margin is also expected to be in line with Q1.Domestic brokerage Motilal Oswal reiterated its sell rating with a SoTP-based target price of ₹310 per share. It raised its FY27 EPS estimate by 12 per cent on account of the better-than-expected JLR performance in 1Q. However, it said multiple headwinds remain and noted that India business margins are under pressure given the adverse mix and rising input costs, while JLR continues to face demand and cost headwinds.Published on August 14, 2026