Tata Motors Shares Plunge Amid Weaker Q3 Results and Downgraded Ratings

Tata Motors’ share price nosedived by over 9% during early trade on Thursday, hitting a 52-week low of Rs 684.25.

The stock opened at Rs 715, down from its previous session close of Rs 752.45, and was trading at Rs 703.90, marking a 6.45% decline at the time of writing. The company’s market capitalization stood at Rs 2,59,132.79 crore.

The sharp decline followed the release of Tata Motors’ Q3 FY25 financial results, which fell short of market expectations. The company’s profit dropped 22% year-on-year to Rs 5,451 crore for the October-December quarter, although revenue from operations rose by 3% YoY to Rs 1.13 lakh crore. EBITDA fell 15% YoY to Rs 13,032 crore, with margins contracting by 240 basis points to 11.5%.

This earnings miss led several brokerage firms to downgrade their ratings and adjust price targets.

• Jefferies downgraded Tata Motors from “buy” to “underperform” and slashed its price target to Rs 660 from Rs 930, signaling further pressure on the stock.
• Nuvama Institutional Equities reduced its price target by 4% to Rs 720 and maintained a “reduce” call, forecasting muted revenue and EBITDA growth of just 2% annually between FY25 and FY27.
• Morgan Stanley retained an “equal-weight” rating with a price target of Rs 853, citing concerns over lower revenue and RoCE guidance for JLR.
• UBS maintained a “sell” rating with a target of Rs 760, questioning the company’s ambitious Q4 guidance and highlighting the importance of China’s economic recovery for JLR’s 10% EBIT target.

The disappointing Q3 results and subsequent downgrades have cast doubt on Tata Motors’ near-term performance.