The company logged non-cash loss of Rs 26,961 crore, the largest in the company’s history in absolute terms, on account of uncertainties around Brexit, slowing sales in China, and technological disruptions facing JLR. It had posted a net profit of Rs 1,215 crore in the year-ago quarter. Revenues of the consolidated entity increased 5 per cent over the year-ago quarter.

Troubles at the Jaguar Land Rover (JLR) unit, which has been hit hard by US-China trade tensions, low demand for diesel cars in Europe and Brexit worries, had tipped Tata Motors into its first loss in three years in the quarter ended June 2018.

The company expects the EBIT (earnings before interest and tax) margin for the fiscal year 2018-19 ending March 31 to be “marginally negative” compared with an earlier guidance of breaking even, Chief Financial Officer, PB Balaji said.

“We are now taking clear and decisive actions in JLR to step up its competitiveness, reduce costs and improve cash flows and make the business fit for the future,” Reuters reported quoting Balaji on a conference call.

Brokerage Motilal Oswal Financial Services, in an earnings review note, downgraded the stock to neutral with a target

price of nearly Rs 166. "We cut our FY20/21 consolidated earnings per share (EPS) estimate by 21 per cent/13 per cent. Consequently, our net debt estimate is almost doubling, dragging down the equity value," the note added.

In the past one year, shares of the company have tumbled nearly 56 per cent from Rs 377.80 to Rs 182.85 (as of Thursday's close). In comparison, the Nifty Auto index has corrected 22 per cent while the NSE's benchmark index Nifty has risen nearly 6 per cent during the same window.

At 09:45 am, the stock was trading 14.44 per cent lower at Rs 156.45 apiece on NSE.