JLR now expects an EBIT margin of 5-7% for FY26, down from the 8.5% it clocked in FY25. Adding to the pressure, the company guided for free cash flow to be 'close to zero' this year, compared to 1.5 billion pounds in FY25.

The management is eyeing a rebound in free cash flow by FY27-28 and eventually aims to push EBIT margins back to 10%, though no specific timeline has been laid out.

JLR remains critical to Tata Motors’ bottom line -- contributing 71% to revenue and 80% to profitability in FY25. While average revenue per unit stayed above 70,000 pounds, it was flat year-on-year.

On the trade front, the company continues to engage with the Trump administration over tariffs. A UK-US trade deal is expected to reduce tariffs from the current 27.5%, although Slovakia exports still face the full charge.

Tata Motors, part of the Tata Group, is a global automobile manufacturer of cars, utility vehicles, pickups, trucks, and buses. The company's consolidated net profit from continuing operations declined 51.74% to Rs 8,470 crore while revenue from operations increased 0.39% to Rs 119,503 crore in Q4 FY25 over Q4 FY24.