Tata Motors Shares Slide as JLR Cuts Margin Outlook After Cyberattack

Shares of Tata Motors Passenger Vehicles plunged as much as 7.2% to a seven-month low on Monday after the company slashed its fiscal 2026 margin forecast for Jaguar Land Rover (JLR). The stock emerged as the biggest loser on the Nifty 50, even as the benchmark index edged up 0.15%. The downgrade follows a September cyberattack that forced JLR to halt production for five weeks, resulting in a one-time charge of $228.5 million.

JLR, which contributes the majority of Tata Motors’ profits, continues to face multiple challenges including shrinking demand in China, component shortages, rising competition, higher consumption taxes, and the ongoing transition toward electric vehicles. Analysts at Jefferies noted that even strong growth in India would not be enough to offset the piling headwinds. The luxury automaker now expects an operating margin of just 0% to 2% in FY26, sharply lower than its earlier projection of 5% to 7%.

Despite Tata Motors reporting a 22-fold jump in quarterly net profit—boosted by an 826 billion-rupee demerger gain—the company posted a 6.37-billion-rupee loss excluding the one-time benefit due to weak JLR volumes. J.P. Morgan warned of “material cuts to consensus forecasts” following what it described as a weaker-than-expected quarter. By 10:19 IST, Tata Motors shares were down 3.7% at 377.20 rupees.

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