The stock had ended Wednesday among the top losers on the Nifty.
JLR guided for FY27 revenue of £26 billion, implying growth of around 13%, and an EBIT margin of about 4%, lower than analyst expectations of roughly 4.5%.
The company also expects free cash flow to break even in FY27, compared with a negative £2.3 billion in the previous year.
During the Investor Day, JLR outlined a stronger focus on North America as a key growth market and announced plans to launch five new models over the next 18 months, all of them electric vehicles. The company will also continue introducing xHEV models on the MLA platform, including diesel variants, and products on the EMA platform.
JLR said it is intensifying cost-reduction efforts and aims to lower its free cash flow breakeven point to around 300,000 units by FY28 from 350,000 units in FY27.
It also said its China joint venture will pay royalties for Freelander retail sales in China, a factor that some brokerages had not built into their estimates. Capital expenditure guidance for FY27 was set at £3.7 billion.
What the brokerages are saying
| Brokerages | Rating | TP |
|---|---|---|
| CLSA | Outperform | ₹453 |
| Nomura | Neutral | ₹373 |
| Citi | Sell | ₹320 |
| Jefferies | Underperform | ₹300 |
CLSA retained its ‘Outperform’ rating with a target price of ₹453. The brokerage flagged JLR’s aggressive EV launch pipeline, stronger North America focus, cost-reduction initiatives, and the potential benefit from royalty income in the China joint venture.
Nomura maintained a ‘Neutral’ rating and target price of ₹373. It said JLR’s FY27 guidance was slightly below expectations, though the company’s plan for double-digit revenue growth over the next few years remains encouraging.
Citi reiterated its ‘Sell’ rating with a target price of ₹320, calling the FY27 guidance conservative. The brokerage said JLR’s strategic pivot toward North America and the planned launch of five new models over the next 18 months.
Jefferies retained an ‘Underperform’ rating with a target price of ₹300. While it acknowledged JLR’s efforts to reduce breakeven volumes and ramp up EV launches from 2026, it also flagged headwinds such as rising competition, elevated discounts, higher warranty costs, and ageing key models.
