Tata Motors Passenger Vehicles Ltd (TMPVL) shares will be in focus on Monday, 16 November, after the automaker reported its September quarter results, with a sharp increase in revenue and a narrowing of operational pressures but a substantial consolidated loss due to exceptional charges.
The stock has declined nearly 22% so far in 2026, raising the question of whether the recent correction offers investors an opportunity to accumulate the auto stock. However, brokerages remain divided on its prospects, with Motilal Oswal Financial Services reiterating its ‘Sell’ rating and setting a target price of ₹240, while Nuvama Institutional Equities has maintained its ‘Buy’ rating, albeit with a reduced target price of ₹360 from ₹450.
TMPVL reported a consolidated net loss of ₹5,531 crore for Q2 FY27, compared with a profit of ₹76,170 crore in the corresponding quarter last year. The loss included exceptional items worth ₹6,738 crore, primarily comprising employee separation costs of ₹3,776 crore and asset impairment charges of ₹2,856 crore.
Despite the reported loss, consolidated revenue from operations rose 34% year-on-year to ₹96,920 crore. EBITDA margin improved by 630 basis points to 6.2% during the quarter.
The company’s luxury brand Jaguar Land Rover (JLR) reported exceptional items of £530 million, largely linked to restructuring, employee separation costs and the write-down of intangible assets under development. JLR’s revenue increased 20.3% to £5,894 million, while its EBITDA margin expanded 820 basis points to 6.6%.
In the domestic business, Tata Motors Passenger Vehicles’ revenue rose 50.9% to ₹20,423 crore, although its EBITDA margin declined 180 basis points to 4%.
CFO Dhiman Gupta said the domestic business continued to build on its growth momentum, while JLR delivered resilient volumes despite market-specific challenges and the wind-down of previous Jaguar models. However, adverse product mix and persistent commodity cost pressures weighed on margins.
What brokerages say?
Motilal Oswal Financial Services: Sell | Target price: ₹240
Motilal Oswal has reiterated its ‘Sell’ rating on Tata Motors PV, with a target price of ₹240, implying a downside of around 16% from Friday’s closing price of ₹287.
The brokerage flagged multiple headwinds for JLR, including continued pressure from VME costs, elevated commodity prices, weak demand in China and higher interest expenses amid rising JLR debt. It also highlighted the downward revision in FY27 margin guidance and the likelihood of raw material cost pressures keeping margins in the India business under strain.
Motilal Oswal has cut its FY27 and FY28 earnings per share (EPS) estimates by 69% and 5%, respectively. While the domestic business continues to gain market share, the brokerage believes adverse product mix and higher input costs could weigh on profitability. It added that JLR’s cost-reduction initiatives may only partially offset the ongoing demand- and cost-related challenges.
The brokerage values JLR and the India passenger vehicle business at 2 times and 13 times EV/EBITDA, respectively, to arrive at its sum-of-the-parts (SoTP)-based target price of ₹240.
Nuvama Institutional Equities: Buy | Target price: ₹360
In contrast, Nuvama Institutional Equities has retained its ‘Buy’ rating on Tata Motors PV, with a revised SoTP-based target price of ₹360, down from its earlier estimate of ₹450.
The brokerage expects the India passenger vehicle business to deliver revenue and EBITDA CAGRs of 18% and 20%, respectively, over FY26–FY29, supported by healthy volumes and an improved product mix.
For JLR, Nuvama projects revenue and EBITDA CAGRs of 11% and 35%, respectively, over the same period, driven by scale benefits and cost savings.
Nuvama has valued the India PV and JLR businesses at 11 times and 2 times September 2028 EV/EBITDA, respectively, and pegged the investment value at around ₹60 per share. It noted that the stock is trading at FY28/FY29 estimated EV/EBITDA multiples of 3 times and 2 times.
Tata Motors PV share price performance
On Friday, Tata Motors PV share price ended 3.37% lower at ₹287 apiece on the BSE.
Tata Motors PV shares have witnessed a largely weak trend, declining 21.88% so far in 2026 and 27.90% over the past year. The stock has fallen 17.54% in the last three months and 14.76% over six months. However, it has staged a recent recovery, gaining 8.22% over the past two weeks, while remaining marginally higher by 0.35% over the last month. The stock was down 1.71% over the past week.
Rajesh Bhosale, Technical Analyst at My Advisor Alpha, said the stock witnessed a sharp correction during Friday’s session, erasing a significant portion of its recent gains. He identified ₹280 as the immediate support level, which coincides with a bullish gap. A breach below this level could trigger further selling pressure, dragging the stock towards ₹270. On the upside, ₹300 remains the immediate resistance, coinciding with the recent swing high.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
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