- Tata Motors reported a net income of 39.2 billion rupees for the first quarter, which fell short of the expected 40.55 billion rupees.
- The revenue from Tata’s commercial vehicles was 170 billion rupees, missing the estimated 179.59 billion rupees.
- Tata’s passenger vehicles revenue was 109 billion rupees, lower than the anticipated 118.68 billion rupees.
- Jaguar Land Rover’s revenue came in at GBP6.6 billion.
- Tata Motors‘ finance cost was better than expected at 9.38 billion rupees, against an estimate of 14.26 billion rupees.
- The company recorded an EBITDA of 97 billion rupees.
- Jaguar Land Rover achieved an EBITDA margin of 9.3%.
- Among analysts, there are 17 buy ratings, 10 hold ratings, and 6 sell ratings on Tata Motors.
Tata Motors on Smartkarma
Analysts on Smartkarma have provided insightful coverage on Tata Motors, focusing on the challenges faced by its subsidiary, Jaguar Land Rover. Sreemant Dudhoria,CFA, has highlighted the weakness in JLR’s Q1FY26 wholesale volumes due to model transitions, tariff shocks, and a pause in US shipments, impacting the luxury car market. The concentration risk arising from a few high-margin models adds uncertainty in a sluggish global macro environment, leading Dudhoria to maintain a bearish sentiment.
Moreover, Sudarshan Bhandari‘s analysis questions Tata Motors‘ ability to withstand the impact of the 25% US auto import tariffs on its JLR unit. The imposition of tariffs may reduce EBITDA margin and challenge the company’s performance in FY26. Bhandari’s bearish outlook suggests that meeting ambitious EBIT margin guidance for FY25 may be difficult without swift demand or cost-side adjustments, indicating potential further challenges for Tata Motors.
A look at Tata Motors Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Tata Motors shows a promising long-term outlook. With strong scores in Growth and Value at 5 and 4 respectively, the company is positioned well for future expansion and is seen as undervalued in the market. Additionally, a solid score of 4 in Dividend indicates a commitment to rewarding shareholders over time. However, the scores for Resilience and Momentum at 3 each suggest some room for improvement in these areas.
Tata Motors Limited, a company that manufactures cars and commercial vehicles, appears to have a bright future ahead. With a focus on growth and value, coupled with a decent dividend score, Tata Motors is working towards enhancing its position in the market. While there are some areas like resilience and momentum that could be bolstered, overall, the company’s strong foundation in manufacturing a variety of automotive vehicles positions it well for long-term success.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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