Tata Motors Q3 profit falls 22% to ₹5,451 cr, revenue up 3%

Tata Motors has reported a 22% drop in the third quarter of the fiscal year (Q3 FY25) at ₹5,451 crore, down from ₹7,025 crore a year before. Sequentially, Tata Motors Q3 profit grew 62% from ₹3,450 crore in the previous quarter.

The company's consolidated revenue from operations increased 3% YoY to ₹1.13 lakh crore during the said quarter, up from ₹1,10,577 crore in the year-ago period. Consolidated EBITDA rose 13.7% to ₹15,500 crore in Q3 FY25, down 60 bps from the same period last year.

The company's total expenses in Q3 FY25 rose marginally to ₹1,07,627 crore from ₹1,04,494 crore in the year-ago period. The EBITDA margins came in at 13.7%, a 60 bps drop YoY.

PB Balaji, Group Chief Financial Officer, Tata Motors said: “In Q3, the performance of all businesses improved sequentially. For Ytd FY25, our business grew 1.6% over the previous year to ₹323.0K Cr and delivered a robust PBT (bei) of ₹22.3K Cr (+14.5%). The fundamentals of the business are strong and therefore despite external challenges we are confident of delivering another strong performance this year.”

Tata Passenger Vehicles

Unit-wise, PV arm Tata Passenger Vehicles saw steady volumes in Q3 at 140.0K units (+1.1% yoy), while revenues in Q3 FY25 were down 4.3% yoy at ₹12.4K Cr. EBITDA margins in Q3FY25 were 7.8% up 120 bps on a yoy basis, with cost reduction actions and incentives more than offsetting adverse realisations.

Shailesh Chandra, MD, says the company recorded wholesales of 140K units (1.1% growth over Q3 FY24) in Q3 and retail sales growth of 6% over Q3 FY24. "This has allowed us to sharply reduce our channel inventory ahead of Q4 FY25."

Chandra says in the EV segment, Tata Motors registered 19% growth in the domestic personal segment, although our fleet volumes declined YoY due to the expiry of FAME II subsidy. "Our new product launches including Curvv, Curvv.ev, Nexon CNG and Nexon.ev 45 continue to see strong customer traction."

In its outlook, Tata Passenger Vehicles says the PV industry is poised for moderate growth in FY25. "Segment shifts in the industry are likely to continue with strong growth in the SUV segment, and continued traction for emission-friendly powertrains. With multiple product launches, innovations and a strengthened multi-powertrain strategy, Tata Motors is well poised for further growth in CY 25."

Jaguar Land Rover

Jaguar Land Rover saw revenue rising 1.5% YoY to £7.5 billion, while YTD revenue at £21.2 billion was flat yoy. Compared to Q2 FY25, revenue was up 16%, driven by higher wholesales following supply disruptions in Q2 FY25. "JLR delivered a robust performance in Q3 FY25 with record quarterly revenue, highest EBIT margin in a decade and a ninth successive profitable quarter," says the company.

Tata Commercial

In Q3 FY25, domestic wholesale CV volumes were 91.1K units, marginally lower as compared to 91.9K units in Q3 FY24, but marking significant improvement as compared to 79.8K units recorded in Q2 FY25.

The company says HCV segment witnessed "robust" sequential growth, thanks to a resurgence in construction and mining activities post-monsoon, plus the festive season demand.

In Q3, Tata Commercial exported 4.5K units down 6% yoy. Its revenues were down by 8.4% yoy to ₹18.4K Cr, however, EBITDA margins improved to 12.4% (up 130 bps yoy) led by savings in commodity costs and PLI incentive (90bps).