JLR Lowers Margin Forecast for FY26

JAGUAR LAND ROVER (JLR), the British luxury carmaker owned by Tata Motors, has sharply lowered its earnings forecast for FY26 and delayed the launch of its EV battery plant in the UK by a year.

- SWARAJ BAGGONKAR

The decisions come amid growing demand uncertainties in key international markets, including the US and China.

During its Investor Day event held in the UK on Monday, JLR revised its earnings before interest and taxes (Ebit) margin outlook for FY26 to a range of 5–7%, a significant drop from the 10% projection it had shared last year. This updated forecast also marks a decline from the company's recent performance, with Ebit margins of 8.4% reported for both FY25 and FY24. JLR had previously outlined an ambitious long-term goal of achieving a 15% Ebit margin under its 'Reimagine' strategy. The company also projected free cash flow to be "close to zero" this year, compared to the robust £1.5 billion it generated last year.