Tata Motors Q4 Results: Consolidated profit falls 51% YoY; declares final dividend of ₹6

Tata Motors Q4 Results: Automaker Tata Motors on Tuesday, May 13, announced its March quarter (Q4) results, reporting a 51.34 per cent year-on-year (YoY) fall in its consolidated net profit to ₹8,470 crore. In the same quarter last year, the company's profit was ₹17,407 crore. The company's revenue during Q4FY25 increased nominally by 0.4 per cent YoY to ₹1,19,502 crore.

EBITDA declined 4.1 per cent YoY to ₹16,700 crore, while EBITDA margin declined 60 bps to 14 per cent.

For FY25, the company reported record revenues of ₹4,39,695 crore, which was up 1.3 per cent YoY, while profit declined 11.4 per cent to ₹27,830 crore.

The company said the Tata Motors group turned net auto cash positive in FY25 with a net cash balance of ₹1,000 crore.

Further, it said lower depreciation and amortisation at JLR, better CV profitability and savings in interest cost were partially offset by lower volumes and lower operating leverage.

"Despite external headwinds, Tata Motors sustained its strong performance in FY25, delivering its highest ever revenues and PBT(before excluding exceptional items). On a consolidated basis, the automotive business is now debt-free, reducing interest costs," said PB Balaji, Group Chief Financial Officer, Tata Motors.

"Drawing strength from it, in this environment of heightened uncertainty, we will remain agile, proactively drive our growth agenda, reduce our cash breakeven further whilst continuing to invest in our future. With the shareholders also approving the demerger, we are on track to realise the full potential of each of the businesses,” said Balaji.

The company highlighted that tariffs and related geopolitical actions are making the operating environment uncertain and challenging.

It, however, underscored that the global premium luxury segment and Indian domestic markets are expected to weather this relatively better.

Meanwhile, the company announced a final dividend of ₹6 for FY25.

"We would like to inform that the board of directors has recommended a final dividend of ₹6 per Equity Share of ₹2 each (at 300 per cent) for the financial year ended March 31, 2025. The dividend, if declared at the AGM, shall be paid to the eligible shareholders on or before June 24, 2025," said the company.

Segment-wise performance

Jaguar Land Rover (JLR)

The segment's Q4FY25 revenue stood at £7.7 billion, which was down 1.7 per cent YoY. EBITDA margin dropped 100 bps YoY to 15.3 per cent.

Wholesales for "Defender" hit a new record in FY25 at 115,404 units, "Range Rover Sport" wholesales for the year were up 19.7 per cent YoY.

"JLR continued its trend of consistent performance, delivering record full-year and quarterly profits in a decade. Revenue for the quarter was £7.7 billion, down 1.7 per cent YoY, while full year revenue at £29.0 billion was flat YoY. PBT (before exceptional items) in Q4 FY25 was £875 million, up from £661 million in Q4 FY24, and full year profit before tax was £2.5 billion, up 15 per cent YoY and the best PBT in a decade," said the company.

The company said the US-UK trade deal reduces US trade tariffs on UK auto exports to the US from 27.5 per cent to 10 per cent, within a quota of 100,000 vehicles. This deal brings greater certainty for the sector and stakeholders.

"We will continue to engage with the UK Government on the details of the trade deal. Our priority is to ensure we deliver for our global clients and protect EBIT through the delivery of transformation and efficiency initiatives," the company said.

"Looking ahead, we expect investment spend to remain at £18 billion over a five-year period and will be funded by operational cash flows. We continue to evaluate the impact of global challenges and will provide an update at our Investor Day on 16 June 2025," Tata Motors said.

Tata commercial vehicles (CV)

In Q4 FY25, domestic wholesale CV volumes were 99,600 units, down 4.8 per cent YoY. Exports were at 5,900 units, up 29.4 per cent YoY.

Revenues were marginally down by 0.5 per cent YoY to ₹21,500 crore on account of lower volumes. EBITDA and EBIT margins of 12.2 per cent (up 20 bps YoY) and 9.7 per cent (up 10 bps YoY), respectively, were delivered, driven primarily on account of improvement in realisations, said the company.

"With most macroeconomic indicators on track, improved fleet utilisation and stable sentiment index, we anticipate sustained growth despite global headwinds. We will continue to closely monitor government infrastructure spending and growth across key end-use segments," said the company.

"Our focus will remain to ensure a smooth transition of AC regulation in trucks, coupled with value enhancements. With an expansive product portfolio, smart digital solutions and new nameplate launches on the anvil, we are well-positioned to leverage market opportunities and grow," the company said.

Tata passenger vehicles (PV)

In Q4, PV segment volumes were at 1,47,000 units (down 5.5 per cent YoY). Revenues in Q4 were at ₹12,500 crore, down 13.1 per cent YoY, while EBIT margin was at 1.6 per cent, down 130 bps YoY impacted by lower volumes and realisations, partially offset by cost savings and incentives.

In Q4, PV (ICE) business delivered EBITDA margins of 8.2 per cent, and EV business was EBITDA positive at 6.5 per cent, said the company.

"The overall demand growth will be shaped by macroeconomic factors such as consumption growth, inflation, infrastructure spending and global geopolitics. However, industry momentum is expected to be driven by continued innovation in line with evolving customer preferences," said Tata Motors.

"SUVS, CNG, and EVS will remain key growth drivers, fueling the industry’s expansion. A well-conceived product portfolio with multiple powertrains, exciting new launches and a renewed focus on significantly improving after-sales service, places Tata Motors well to regain its winning momentum," said the company.

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