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Key Points

Tata Motors reported a significant 51% drop in its net profit for Q4 FY25, amounting to Rs 8,470 crore. Despite this, the company's consolidated revenue saw a slight increase, driven by the robust performance of its Jaguar Land Rover division. JLR experienced a 1.1% rise in sales volumes, particularly in North America and Europe, which helped offset weaker domestic sales. Tata Motors also announced a final dividend of Rs 6 per share, reflecting confidence in its future earnings potential.

Key Points: Tata Motors Profit Drops 51% Despite JLR Growth in Q4 FY25

  • Tata Motors Q4 net profit falls 51%
  • Revenue rises marginally by 0.4%
  • JLR sales volumes increase 1.1%
  • Company announces Rs 6 per share final dividend
2 min read

Tata Motors' net profit tanks 51 pc to Rs 8,470 crore in Q4

Tata Motors reports a 51% decline in Q4 net profit to Rs 8,470 crore, despite JLR growth.

"Tata Motors delivered its highest-ever annual revenue and profit before tax. - PB Balaji"

Mumbai, May 13

Tata Motors on Tuesday reported a sharp 51 percent drop in its consolidated net profit for the fourth quarter (Q4) of FY25, even as revenue remained steady and its Jaguar Land Rover (JLR) business posted growth.

The company's net profit stood at Rs 8,470 crore for the January-March 2025 period, down from Rs 17,407 crore reported in the same quarter last fiscal, according to a regulatory filing.

Despite the profit decline, Tata Motors' consolidated revenue from operations rose marginally by 0.4 percent to Rs 1,19,503 crore, compared to Rs 1,19,033 crore in the year-ago quarter.

Total expenses for the quarter were lower at Rs 1,09,056 crore, compared to Rs 1,11,136 crore in the corresponding period last financial year, helping the company control costs.

The company's total income for the March quarter was Rs 1,21,012 crore, slightly higher than Rs 1,20,431 crore in the year-ago period.

Operating profit (EBITDA) in Q4 was Rs 16,700 crore, showing a drop of 4.1 per cent.

However, earnings before interest and tax (EBIT) rose to Rs 11,500 crore, an increase of Rs 1,000 crore year-on-year (YoY).

Tata Motors also announced a final dividend of Rs 6 per equity share for FY25. The dividend is subject to approval at the company's upcoming annual general meeting and, if approved, will be paid by or before June 24.

A bright spot in the results was the performance of its luxury vehicle arm, Jaguar Land Rover.

Sales volumes at JLR rose by 1.1 percent, driven by strong demand for its high-margin SUVs in North America and Europe.

Although the pace of growth has slowed due to weaker demand in China, the strong global performance helped offset weaker sales in Tata Motors' domestic business, which includes passenger cars, trucks, and buses.

JLR's revenue for the quarter grew by 2.4 percent, as per the exchange filing.

PB Balaji, Group CFO of Tata Motors, said the company delivered its highest-ever annual revenue and profit before tax (before exceptional items) in FY25.

He added that Tata Motors' automotive business is now debt-free on a consolidated basis, which has helped reduce interest costs.

Looking ahead, the company acknowledged global uncertainties, such as tariffs and geopolitical tensions, which may impact the auto industry.

However, it expects the premium luxury and Indian domestic markets to be relatively resilient in navigating these challenges.

- IANS

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Reader Comments

R
Rahul K.
Not surprising given the slowdown in domestic auto sales. But good to see JLR performing well internationally. Tata should focus more on affordable EVs for Indian market - that's where the future is! 🚗⚡
P
Priya M.
The numbers look concerning but the silver lining is becoming debt-free. Shows strong financial management. Hope they invest more in R&D for Indian models - we need better fuel-efficient cars with current petrol prices!
S
Sanjay T.
As a shareholder, I'm disappointed with the profit drop but the dividend announcement is some consolation. The management needs to explain why domestic business is struggling when competitors like Mahindra are doing well.
A
Anjali R.
JLR is carrying Tata Motors on its shoulders! The Indian auto sector needs more govt support - high taxes and poor infrastructure are hurting all manufacturers. Still proud of Tata as an Indian multinational though 🇮🇳
V
Vikram S.
The China slowdown affecting JLR shows how globalized our companies have become. Maybe time to focus more on Indian and emerging markets? Africa could be the next big opportunity for Tata vehicles.
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Neha P.
Mixed bag results but kudos for being debt-free! As a Nexon EV owner, I hope they reinvest profits in expanding charging infrastructure. That's the real bottleneck for EV adoption in India. More charging stations please! 🔌

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