Tata Motors‘ share price was in the green on Monday morning even as the company’s September quarter results missed estimates.

What Happened: The automaker reported a net profit of ₹3,343 crore for the quarter, down 11% from ₹3,764 crore in the same period last year. Revenue from operations declined around 3.5% year-on-year to ₹1.01 lakh crore, compared to ₹1.05 lakh crore previously.

Analysts had expected a net profit of ₹4,621.8 crore and a revenue of ₹1.02 lakh crore.

Brokerage Reactions: Jefferies maintained a “buy” rating on the stock but revised its target price downward to ₹1,000 from ₹1,330. The firm noted that Jaguar Land Rover (JLR) expects a much stronger performance in the second half of FY25 and has retained its margin guidance for the fiscal year.

However, demand for commercial vehicles (CVs) and passenger vehicles (PVs) in India has weakened, prompting Jefferies to reduce its FY25-27 earnings per share estimates by 2-9%.

Nomura also maintains a “buy” recommendation with a reduced target price of ₹900, down from its previous target of ₹1,303.

Despite the softer Q2 results, Tata Motors' management remains positive about a JLR rebound in the latter half of FY25, while it anticipates a recovery in India's CV segment by Q4. The brokerage pointed out that JLR’s performance across markets is reportedly stronger than many of its competitors.

See Also: Apple Looks Beyond iPhones, Launches First R&D Subsidiary In India

CLSA has upgraded Tata Motors to “outperform” and set a target price of ₹968. The firm remains confident in JLR's EBIT margin guidance for both FY25 and FY26. Although the CV segment underperformed, upcoming PV launches are expected to drive growth.

UBS reiterated its “sell” rating with a price target of ₹780. UBS observed that while the JLR and CV segments fell short, the PV division met expectations. However, the brokerage raised concerns about the quality of the reported EBIT and highlighted the reduced free cash flow guidance as a downside factor.

Nuvama retains a “reduce” rating with a target price of ₹767, revised from ₹1,010. The brokerage noted that consolidated revenue missed estimates. EBITDA and net profit were also below the research firm’s estimates.

HDFC Securities revised its rating to “reduce” from “sell” with a lower target price of ₹855 from ₹955. HDFC anticipates several headwinds, including a global demand slowdown, normalisation of India's PV market after two years of strong growth and a decline in domestic EV demand following subsidy cuts. The brokerage's revised target price reflects these anticipated challenges.

Price Action: Tata Motors’ share price was up 1.31% to trade at ₹816 as the markets opened on Monday. The stock has gone down around 12% in the last 30 days.

Read Next: Tata Motors’ Punch Comes In At 7th Place In Best Selling Cars List In Oct, Nexon At 9th