Mumbai, June 16 -- 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 ta...