Tata Motors Q4 Results FY25: Net Profit Drops 51% YoY to ₹8,470 Cr, ₹6 Dividend Announced
India’s leading automobile manufacturer, Tata Motors, announced its financial results for the quarter ended March 2025 (Q4 FY25), reporting a 51% year-on-year decline in consolidated net profit, alongside a flat revenue performance and a final dividend recommendation.
🔹 Key Highlights – Tata Motors Q4 FY25
- Net Profit: ₹8,470 crore, down 51% YoY
- Revenue from Operations: ₹1.19 lakh crore, flat YoY
- Final Dividend: ₹6 per share (subject to shareholder approval)
- EBITDA: ₹16,700 crore, down 4% YoY
- EBIT: ₹11,500 crore
- EBITDA Margin: 14% (down 60 basis points YoY)
🗨️ “This is both pleasing and significant as it reflects healthy business fundamentals delivered by a resilient team,” said PB Balaji, Group CFO, Tata Motors.
🚗 Automotive Business Now Debt-Free
- The automotive division is now debt-free, resulting in reduced interest expenses.
- This marks a major milestone in the company’s financial transformation.
🏎️ Jaguar Land Rover (JLR) Performance
🔍 Q4 FY25 Financials:
- Revenue: £7.7 billion (down 1.7% YoY)
- Profit Before Tax (PBT): £875 million (up from £661 million YoY)
- EBIT Margin: 10.7% (up 150 bps YoY)
🔍 FY25 Highlights:
- Full-Year Revenue: £29 billion (flat YoY)
- Record Defender Wholesales: 115,404 units
- Range Rover Sport Sales: Up 20% YoY
🗨️ “JLR has delivered strong earnings for the year and achieved its net debt zero target. We’re now preparing to launch the Range Rover Electric,” said Adrian Mardell, CEO, JLR.
📌 JLR Trade & Tariff Update:
- Implemented short-term measures to combat global automotive trade tariffs.
- Under the US-UK trade agreement, US tariffs on UK auto exports reduced from 27.5% to 10%, within a quota of 100,000 vehicles.
📈 Investment Outlook:
- JLR plans to invest £18 billion over the next 5 years, funded through operational cash flows.
🚛 Commercial Vehicles Segment
🔍 Q4 FY25 Metrics:
- Domestic Wholesale Volumes: 99,600 units (down 5% YoY)
- Exports: 5,900 units (up 29.4% YoY)
- Revenue: ₹21,500 crore (down 0.5% YoY)
- EBITDA Margin: 12.2% (up 20 bps YoY)
- EBIT Margin: 9.7% (up 10 bps YoY)
📌 Full-Year Performance:
- Revenue: Declined 4.7% YoY
- EBITDA Margin: Improved to 11.8%
- Annual Profit: ₹6,600 crore – highest ever
🗨️ “We are committed to sustainable and profitable growth and increasing our Vahan market share,” stated Girish Wagh, Executive Director, Tata Motors.
🚘 Passenger Vehicles (PV) Segment
🔍 Q4 FY25 Highlights:
- Volumes: 147,000 units (down 5% YoY)
- Revenue: ₹12,500 crore (down 13% YoY)
- EBIT Margin: 1.6% (contracted by 130 bps)
🔍 Business Segmentation:
- PV (ICE) EBITDA Margin: 8.2%
- EV Business EBITDA Margin: 6.5% (positive)
📌 Full-Year Insights:
- Revenue: Down 7.5% YoY (impacted by lower hatchback sales)
- EBITDA Margin: Improved by 40 bps
- EBIT Margin: Declined by 110 bps due to operating leverage and higher depreciation
🗨️ “Despite demand volatility, we led the SUV category and CNG growth. CNG and EVs now make up 36% of our portfolio,” said Shailesh Chandra, MD, Tata Motors PV.
📊 Free Cash Flow & Stock Movement
- Automotive Free Cash Flow: ₹22,400 crore (vs ₹26,900 crore in FY24)
- Tata Motors Share Price: Fell 1.7% to ₹708 on the NSE post-result announcement
🔮 Outlook & Strategic Direction
Tata Motors expects momentum in the auto industry to continue, backed by:
- Sustained innovation
- Customer-centric powertrain strategies
- Focus on SUVs, CNG, and EVs as primary growth drivers
The company reaffirms its commitment to:
- Strengthening profitability
- Expanding market share
- Delivering value to shareholders
🔑 Conclusion
While Q4 FY25 saw a dip in Tata Motors’ net profit, the company remains on a strong financial footing with its automotive business turning debt-free, record-breaking JLR performance, and a strategic focus on electric and alternative fuel vehicles. With ₹6 per share dividend and a forward-looking investment strategy, Tata Motors is paving the way for sustainable long-term growth.