Tata Motors PV share price jumps over 8% after Q4 results. Should you buy, sell or hold the auto stock?

Tata Motors Passenger Vehicles share price jumped over 8% in early trade on Friday after the company reported its Q4 results. Tata Motors PV shares rallied as much as 8.18% to ₹366.60 apiece on the BSE.

Tata Motors Passenger Vehicles reported a consolidated net profit of ₹5,783 crore for the fourth quarter of FY26, a decline of 31.7% from ₹8,470 crore in the year-ago period.

The auto major’s revenue from operations in Q4FY26 grew 7% to ₹1,05,447 crore as compared to ₹98,377 crore, year-on-year (YoY).

On the operational front, EBITDA declined 21.7% to ₹11,212 crore from ₹14,498 crore, while EBITDA margin contracted to 10.7% from 14.8% in the year-ago period.

The company’s luxury car subsidiary Jaguar Land Rover (JLR) reported an 11.1% YoY drop in Q4FY26 revenue at £6.9 billion, while its EBITDA margin fell 130 bps to 14%.

Volumes rose significantly QoQ as production returned to normal; full year volumes were impacted by US tariffs, China market challenges and planned wind down of outgoing Jaguar models ahead of new Jaguar launch, in addition to production stoppages following the cyber incident.

Tata Motors Passenger Vehicles also declared a final dividend of ₹3 per share per equity share of ₹2 each for the financial year ended March 31, 2026.

Should you buy, sell or hold Tata Motors PV shares after Q4 results?

Tata Motors PV’s Q4 performance has been ahead of Motilal Oswal’s estimates, both in India and JLR. While the Indian PV demand outlook remains positive, the company is expected to see margin pressure in the near term, given the material surge in input costs.

Further, JLR continues to face multiple headwinds, both on the demand and cost front. While the company has embarked on a major cost reduction initiative, it is likely to only help partially offset the current headwinds, Motilal Oswal said.

Given significant challenges at JLR and the continued geopolitical uncertainty, the brokerage firm reiterated its ‘Sell’ rating on Tata Motors Passenger Vehicles shares stock with an SoTP-based target price of ₹303 per share (based on FY28E). It values both JLR and the Indian PV business at 2x and 13x EV/EBITDA, respectively.

JM Financial upgraded its ratings on Tata Motors PV shares to ‘Buy’ from ‘Reduce’ and raised the target price to ₹415 per share from ₹327 earlier.

The rating action has been supported by the company’s improving JLR demand outlook, healthy domestic demand momentum with management guiding for ~10% YoY industry growth in FY27, a strong launch pipeline and lean dealer inventory across both JLR and domestic operations.

JM Financial factors in 17% volume growth for JLR and 12% growth for domestic business for FY27E YoY. It expects strong operating leverage and cost optimisation to support margins, with FY27E EBITDA margin of 8.3% for the domestic business and EBIT margin of 8.7% for JLR.

Nuvama Institutional Equities increased its FY27E and FY28E consolidated EPS estimates by up to 14%, assuming better revenue and margin. It builds in revenue and EBITDA CAGR for India PV at 19% and 36% over FY26– 28E driven by robust volumes, PLI benefits and better mix. Moreover, JLR revenue and EBITDA CAGR is at 16% and 55% owing to low base, launches, better scale and cost savings.

The brokerage firm retained a ‘Buy’ call and raised Tata Motors PV share price target to ₹470 apiece from ₹400 earlier.

At 9:30 AM, Tata Motors PV share price was trading 4.88% higher at ₹355.40 apiece on the BSE.

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Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.