“The uncertainty related to the war in West Asia will loom large over the market in the near term. The major risk from the market perspective is the energy risk arising from the surge in crude,” said VK Vijayakumar, Chief Investment Strategist at Geojit Investments.
The company recently reported robust year-on-year (YoY) sales growth for February, with total sales jumping 35% to 63,331 units, compared with 46,811 units in the same month last year.
Domestic passenger vehicle sales rose 34% YoY to 62,329 units, up from 46,435 units a year ago. International passenger vehicle sales also expanded significantly, increasing to 1,002 units from 376 units in February 2025.
Electric vehicle (EV) sales continued to gain traction, climbing 57% YoY to 8,385 units across domestic and international markets, compared with 5,343 units in the year-ago month.
In the recent third quarter, the company reported a loss of Rs 3,486 crore, compared with a profit of Rs 5,406 crore in the same period last year. Revenue from operations fell 26% YoY to Rs 70,108 crore.
The earnings hit was largely due to a cyber incident at Jaguar Land Rover (JLR), which disrupted production and wholesale volumes. JLR’s revenue for the quarter stood at £4.5 billion, down 39% YoY, as production normalised only by mid-November and distribution took additional time to stabilise. Tata Motors reported an EBIT loss of Rs 3,300 crore during the quarter.While the global business weighed on overall numbers, the company noted that domestic performance improved sequentially due to higher volumes and incentives. Management expects a stronger recovery in the fourth quarter as supply normalises and dispatches improve.
Investors are likely to focus more on earnings visibility and global headwinds facing JLR than on near-term domestic volume growth. The cyber disruption’s impact on margins and profitability has raised concerns about near-term recovery timelines, even as volumes improve.
Analysts note that while February numbers reflect healthy demand, particularly in EVs, the stock may remain sensitive to updates on JLR performance, global demand conditions, and margin recovery in the coming quarters.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)