Why JLR’s sales slowdown could hit Tata Technologies and Tata Elxsi
Already at least three analysts faced with slowdown in business from European automobile companies and competition from Chinese colleagues, TATA Group’s engineering, research and development (ER & D) companies, JLR’s current financial financial -year -long profit and income will encounter the business world more, he said.
Analyst-Corporal Equality- Sanket Kelaskar, a Ashika Group, argues that long-term technical ties will remain on the road, but there may be a delay in some expenditures.
“JLR’s cash flow restrictions may delay optional expenditures, but key strategic technology connections are likely to remain on the road,” he said.
Analysts in Nirmal Bang said that the effect of the slowdown of JLR on May 24 is one of the most important challenges for the Pune -based Tata Technologies.
“A) Anchor Customer (JLR); B) Keeping in technology business and C) Project cutting and cutting projects and cutting projects in new Age automotive companies, FY26 will follow a lower increase in earnings,“ B) Delay in technology business and C) C) C) will keep the valuation in the project section ”.
Similar effect on Elxsi
Analysts draw attention to a similar effect on Tata Elxsi, which considers JLR as an important customer. In the June 8 note, analysts in Kotak Corporate Stocks wrote that the company declined 8% from JLR.
Kotak Note, “FY2026’de JLR’den income ratio we do not expect a significant increase,” he said.
From 12 months to March 2025, both Tata Elxsi and Tata Technologies recorded more than one fifth of his income from Jaguar Land Rover. The UK -based company contributed La856 Crore to Tata Elxsi’s income La1,425 Crore to Tata Technologies in FY25.
Tata Elxsi and Tata Technologies ended in 25 fiscal years La3,729 CRORE and La5.168.5 Crore, respectively. Tata Elxsi partnership with JLR as a research and development center for new vehicle programs. Both Tata Elxsi and Tata Technologies offer product design ideas, digital and engineering services in the fields of mechanical, electronics and software development and complete vehicle program management.
In 2023, Tata Consultancy Services Ltd won an order of 800 million pounds to renew CT systems from Tata Motors’ subsidiary Jaguar Land Rover.
About the Company LaAccording to the company’s annual report, 3,722 CRORE from the last financial enterprise of JLR (about $ 430 million). Any slowdown in income from JLR may affect the growth of the already challenged company due to less mega agreement last year.
The e -mails sent to Tata Technologies and Tata Elxsi remained unanswered, but they do not expect a notch from JLR in the business world. While waiting for the value of Elxsi La1,200 crore from JLR is waiting for Tata Technologies LaAccording to the annual reports of the two companies, 1,425 Crore in 26 financially.
For JLR, last quarter general sales were dragged by North America, which decreased by 12% annually. The expected slowdown in sales enabled the company to reduce its 26 fiscal years of earnings from 10% to 5-7% before interest and tax guidance.
Moreover, the future is gloomy. The automobile company’s free cash flow is expected to fall almost zero in 26 financial years. As a result of the restrictions in JLR’s position, analysts envision to slow down in firms connected to JLR.
Investors skeptical
Investors remained skeptical about the expectations of two ER & D companies. In 2025, the stock prices of Tata Technologies and Tata Elxsi fell 22% and 8%, respectively against a 8% increase in Nifty IT. In particular, Tata Technologies opened to the public in November 2023, the first for Tata group about 20 years after the TCS’s 2004 list.
In a statement to Mint on July 8, Jaguar Land Rover said he would continue his general guidance for total investments. Jaguar Land Rover said, “In the face of global economic winds, we have an open plan and about investment.
JLR did not specify whether there would be any slowdown in engineering and research and development companies.
When Tata Technologies’ administration was asked by analysts in the call for January-March, JLR took over the slowdown from the business.
“JLR lives outside India and is exposed to uncertainties in the largest markets in Europe and the United States. Therefore, they are impressed as everyone, but Tata Motors showed flexibility with the general manager and the general manager of the general manager for the last six to nine months,” he said. Analysts on April 25.
Jaguar Land Rover’s growth expectations in income come at a time when the company undertakes business exercises to balance the impact of US tariffs to some extent.
“Tariff effect will be on Jaguar Land Rover. The tariff rose from 2.5%to 27.5%and the tariff according to England-USA FTA is 10%.”
“However, due to the steps taken by JLR, the effect fell to 600 million pounds, which can be seen under the guidance of margin,” he added.
