Tata Motors shares can fall to Rs 550, predicts Jefferies. Should you sell?

Jefferies cut Tata Motors’ FY26–28 EPS by 8–15%, downgraded to ‘Underperform’, and slashed target to Rs 550 on weak Q1 and JLR/PV headwinds.

Q1 EBITDA and PBT missed estimates; JLR volumes fell 11% YoY, India PV volumes down 10% with 14-quarter low margin of 4%.

JLR faces competition, tariffs, high costs, and aging models; India PV share slipping, CV demand weak, and Iveco acquisition seen as risky.

Q1 net profit plunged 63% YoY to Rs 3,924 crore; stock down 13% YTD and 40% in a year.