Tata Motors Q3 Results: Net profit down 22.5% YoY to ₹5578 crore; revenue up 2.7%

Tata Motors, a leading global automobile manufacturer, announced its December quarter performance on January 29, reporting a 22.5% drop in consolidated net profit to ₹5,578 crore. The company posted a net profit of ₹7,415 crore in the same period last year. Although the company's JLR segment reported strong numbers, the drop in margins weighed on the company's performance.

Sequentially, the profit improved by 62%, as the company posted a net profit of ₹3,450 crore in the preceding September quarter. The revenue from operations during the reporting quarter stood at ₹113,575 crore, reflecting a modest 2.7% improvement compared to ₹109,799 crore reported in Q3FY24.

On the operating front, its EBITDA dropped by 14.7% to ₹13,081 crore in Q3FY25 over ₹15,333 crore in the corresponding period in the previous fiscal, while the EBITDA margins stood at 13.7%, a 60-basis drop on YoY basis.

JLR reported a strong performance in Q3 FY25 with record quarterly revenue, highest EBIT margin in a decade and a ninth successive profitable quarter. CV revenues, on the other hand, declined on account of lower volumes and mix, while PV volumes for the quarter were steady at 140.0K units, as per company's earnings filing. 

Meanwhile, the company received sanction of Automotive Production Linked Incentives (PLI) in December 2024. Accordingly, an income of ₹351 crore has been recognized.

Segmental Performance

JLR delivered a robust performance in Q3 FY25, achieving record Q3 revenue, the highest EBIT margin in a decade, and its ninth consecutive profitable quarter. Revenue for the quarter stood at £7.5 billion, up 1.5% YoY. However, the EBITDA margin contracted by 200 basis points YoY to 14.2%.

Despite economic challenges, the company remains confident in meeting its FY25 profitability and cash flow goals, targeting an EBIT margin of at least 8.5% and maintaining positive net cash.

Revenue in the Commercial Vehicle segment declined by 8.4% YoY to ₹18,431 crore; however, EBITDA margins improved to 12.4% (up 130 basis points YoY), supported by savings in commodity costs and PLI incentives (90 basis points). On a year-to-date basis, the CV business delivered an EBITDA margin of 11.6% (+120 basis points YoY).

Passenger Vehicle revenue stood at ₹12,354 crore, down 4.3% YoY. EBITDA margins in Q3 FY25 improved to 7.8%, up 120 basis points YoY, as cost-reduction measures and incentives more than offset adverse realizations, the company said in its earnings report.

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