Tata Stocks Fall: TMPV Leads Losses After Weak Q1 Results

Most Tata Group stocks extended their weak trend on Friday, August 14, marking a third consecutive day of decline following the resignation of Tata Sons’ chairman N Chandrasekaran earlier in the week. While some entities within the conglomerate saw positive movement, several heavyweights experienced notable losses.

Market Movers and Key Numbers

• Tata Motors Passenger Vehicles (TMPV) was the top loser, experiencing selling pressure after reporting weak June quarter results, with losses up to 6 percent.
• Other significant decliners included Tata Consultancy Services (TCS), Tata Steel, Tata Communications, and Trent.
• Stocks showing positive movement included Tata Motors, Nelco, Voltas, and Tejas Networks.

Tata Motors Passenger Vehicles (TMPV) specifically faced headwinds as its profit for Q1 FY27 plummeted by nearly 80 percent year-on-year to ₹859 crore. This significant drop from ₹4,003 crore in Q1 FY26 was attributed to persistent commodity pressure and supply chain challenges.

Despite the sharp profit decline, TMPV’s total revenue from operations for the quarter demonstrated resilience, increasing by 9 percent year-on-year. Revenue reached ₹95,799 crore, up from ₹87,677 crore recorded in the same quarter of the previous fiscal year.

Jefferies’ Outlook on Tata Group Companies

Brokerage firm Jefferies commented on the market situation, asserting that despite potential near-term concerns stemming from the leadership change, business fundamentals are ultimately expected to prevail. The firm offered specific ratings and outlooks across various Tata Group entities.

• Top Picks: Jefferies identified IHCL, Tata Consumer, Tata Steel, and Voltas as its preferred selections within the group.
• Underperform Ratings: A bearish outlook was assigned to Tata Consultancy Services due to growth concerns, Tata Motors Passenger Vehicles citing headwinds for JLR, and Tata Power over execution issues.
• Hold Ratings: Trent received a ‘Hold’ rating based on growth visibility, while Titan was assigned the same due to valuation concerns.

Jefferies expressed a positive view on Voltas, highlighting its strong position as India’s largest room air-conditioner player. The brokerage also noted Titan’s market share gains, premiumisation trends, and the expanding scale of its adjacent businesses, projecting revenue and profit growth of 16-21 percent for these companies.

Regarding Tata Steel, Jefferies indicated that the company stands as a key beneficiary of a potential recovery in India’s steel prices, noting room for expansion in Asian spreads. For Tata Consumer Products, its unique positioning with limited dependence on crude-linked inputs compared to peers was emphasized, with India seen as core to stable growth and rapid expansion anticipated from its diversified portfolio.