Tata Motors share price declines 3% post Q4 results, dividend declaration. Should you buy, hold or sell the stock?

Stock Market Today: Tata Motors share price declined 3% in the morning trade on Wednesday following the Q4 results announcement after market trading hours on Tuesday. Tata Motors also announced a dividend.

Tata Motors Q4 Results

The commercial vehicles to Jaguar Land Rover (JLR) maker Tata Motors on Tuesday, May 13, reported a 51.34 per cent year-over-year (YoY) decline in its consolidated net profit to ₹8,470 crore during the January-March 2025 quarter (Q4FY25). The company had reported ₹17,407 crore net profit in the same period the previous year. The company's Q4FY25 sales at ₹1,19,502 crore represented a marginal YoY growth of 0.4%.

Earnings before interest, tax, depreciation and amortisation (EBITDA) fell 4.1% YoY to ₹16,700 crore, while the EBITDA margin compressed 60 basis points to 14%.

During the financial year 2024 -2025, Tata Motors reported record revenue of ₹4,39,695 crore, a growth of 1.3% YoY. However, its profit fell 11.4% to ₹27,830 crore.

Tata Motors Share Price Outlook

Analysts at HSBC Securities and Capital Markets (India), post Q4 FY25 result, said that US tariffs and JLR's ageing portfolio are likely to restrict growth in FY26. Hence, margins may disappoint as well.

In the domestic passenger vehicle (PV) market, competition continues to impact Tata, while the commercial vehicle (CV) cycle recovery remains painfully slow. Amid limited near-term triggers, HSBC Securities downgraded Tata Motors stock to Hold (from Buy), although it lifted the target price to ₹770 (from ₹700 earlier).

As per Jefferies India, Tata Motors faces a tough year ahead. Tata's Q4 EBITDA fell, but was still 4% above Jefferies' estimates. The decline in EBITDA was led by lower JLR margins, said Jefferies. 

“JLR is likely to face a tough year ahead due to US tariffs, increasing competition in China, and rising customer acquisition costs. India's CV demand has slowed down, too, and competition is rising in electric PVs,” it said. 

Jefferies has cut FY26-27 EBITDA estimates by 8% but raised earnings per share estimates by 3-4%. It retained ‘Underperform’ ratings with a revised target price of ₹630.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.