Tata Motors Q4 net profit slumps 51% to ₹8,470 crore

Net profit of Tata Motors dropped 51% year-on-year to ₹8,470 crore for the quarter ended March 31, 2025, compared with ₹17,407 crore in the corresponding quarter last year.

Revenue from operations rose by a modest 0.5% to ₹1.19 lakh crore for the fourth quarter of FY25 compared with ₹1.18 lakh crore in the year-ago period.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter fell 4% year-on-year to ₹16,700 crore in Q4 FY25.

Tata Motors’ board recommended a final dividend of ₹6 per share.

Tariffs and related geo-political actions are making the operating environment uncertain and challenging, the automaker said in a statement. “The global premium luxury segment and Indian domestic markets are expected to weather this relatively better. Drawing strength from our healthy business fundamentals, we remain focused on executing our growth strategy flawlessly, serving our customers better, and maintaining a heightened vigil on costs and cashflows whilst continuing to invest in our future,” the statement said.

Despite external headwinds, Tata Motors sustained its strong performance in FY25, delivering its highest ever revenues, said PB Balaji, Group Chief Financial Officer, Tata Motors.

“On a consolidated basis the automotive business is now debt-free, reducing interest costs. This is both pleasing and significant as it reflects healthy business fundamentals delivered by a resilient team. 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,” Balaji said.

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 pounds, down 1.7% YoY. JLR’s EBIT margin for the quarter was 10.7%, up 150 basis points compared to Q4 FY24 and for the full year was 8.5%, the best Q4 and full year EBIT margin in a decade. “The increase in profitability year-on-year reflects higher volumes and a reduction in depreciation and amortisation (D&A), partially offset by an increase in VME (Variable Marketing Expenditure),” it said.

In April 2025, JLR implemented a series of short-term actions to address the immediate impact of trade tariffs introduced by the US administration on the global automotive sector. “On 8 May 2025 we welcomed the positive announcement of a US-UK trade deal. This reduces US trade tariffs on UK auto exports to the US from 27.5% to 10%, within a quota of 100,000 vehicles. This deal, brings greater certainty for our sector and stakeholders,” the automaker said.

“We will continue to engage with the UK Government on the detail of the trade deal. Our priority is to ensure we deliver for our global clients and protect EBIT through delivery of transformation and efficiency initiatives. Looking ahead, we expect investment spend to remain at £18 billion over a five year period and will be funded by operational cash flows,” it said.

“JLR has ended the year with strong annual and quarterly earnings, including delivering our tenth consecutive profitable quarter and our net debt zero target. We have achieved record sales of Defender, revealed the stunning Jaguar Type 00 and we are preparing to launch the wonderful Range Rover Electric. This strong and consistent performance, the commitment of our people, partners and clients and the appeal of our luxury brands will support our response to current global economic challenges including the evolving global trading environment,” said Adrian Mardell, chief executive officer, JLR.