JLR holds back revenue guidance, projects hit to profitability in FY26
Jaguar Land Rover Automotive PLC, a UK-based subsidiary of TATA Motors Ltd, did not give income guidance to investors, although the US tariff increases and a slowdown in the Chinese market would suffer in 2025-26 in 2025-26.
Tata Motors’ shares, after the comment of JLR on Monday, falling 4% during the trading hours entered a queue point.
In 2024-25, the company, which contributed to the total income of its parents by 71% and 79% to the total activity profit, guided the operating profit margin in the 5-7%, which is the largest market, which is less than 8.4% recorded as the last financial.
In their previous presentations, investors predicted that the profit margin would reach 10% by 2025-26.
JLR also reflects a blow to the free cash flow in the current financial year, which is expected to be close to zero from £ 1.4 billion recorded in 2024-25.
The specified long -term vision is to reach 15% operating profit margin.
In 2024-25, his income decreased by 0.1% to £ 28.9 billion, while the profit after the tax decreased by 30% to £ 1.8 billion. Retail sales fell by 0.6%.
The management of the luxury automobile manufacturer is waiting to return to the growth path in 2026-27 and 2027-28 after adapting to the influence of the global macro environment.
In March, US President Donald Trump announced that automatically relevant imports were imposed on a 25% tariff. Since JLR has plants in the UK and the European Union, it paused in April to evaluate the impact of tariffs.
Trade barriers
Although the US has a partial relief after signing a free trade agreement with the UK in May, its appearance on tariffs from the EU is still unclear. In addition, even after the agreement with the UK, the tariffs that JLR will face in the US market are higher than they had previously encountered in exports.
JLR, JLR’s Finance Manager Richard Molyneux, Tata Motors said in a statement to investors during the call in May 13, “Today we will pay a 300% increase in the tariffs we pay in the UK, so we will increase from 2.5% to 10%. In addition, we will pay 1,000% in previous tariffs on the defensive and discovery,” he said.
Analysts said that JLR will probably see the volume narrowing of the current financial year, which will affect Tata Motors’ consolidated earnings.
Motilal Oswal Financial Services analysts wrote in the June 10 note, “JLR faces more than one head wind and rising VME (variable marketing expenses), warranty and emission costs, which demand weakness in key regions such as tariff leadership to the US, the United States for exporting the United States.
Motilal Oswal Note, Raghunandhan NL, Manav Shah and Nuvama corporate stocks, Rahul Kumar’da observations, the road in front of JLR seems difficult in the near term, he said.
Analysts, in the June 10 note, “JLR, ‘Jaguar’ models cut, loss of market share in the Chinese region and the application of tariffs in the US region will lead to a volume contraction in front of us,” he said.
In 2024, JLR decided to block all Jaguar models, including XE, XF, XF Sportwagon and F-Type. He plans to make Jaguar a completely electric brand until 2026.
