Tata Motors Q4 earnings: Net profit falls 51%, EBITDA rises marginally; company announces dividend of ₹6/share

Tata Motors, the country's leading automobile company, on Tuesday, May 13, reported net profit of ₹8,470 crore in January-March quarter, marking a decline of 51% from ₹17,407 crore in the same period last year.

Its revenue from operations rose marginally to ₹1.19 lakh crore at the end of March quarter. Its operating profit also known as earnings before interest, taxes, depreciation, and amortisation (EBITDA) improved 1% annually to ₹16,818 crore and its EBITDA margin came in at 14%.

Despite the Q4 decline, Tata Motors delivered a record full-year performance in FY25 as its revenue came in at ₹4.39 lakh crore, EBITDA at ₹57,600 crore and net profit at ₹28,100 crore, the company said in a press release.

The company also turned net auto cash positive, closing the year with a net cash balance of ₹1,000 crore. Key contributors included lower depreciation at Jaguar Land Rover (JLR), improved commercial vehicle profitability and interest cost savings, the Mumbai-based company said.

Q4 JLR performance

Tata Motors' luxury subsidiary, Jaguar Land Rover (JLR), reported its tenth consecutive profitable quarter and the highest annual profit before tax (PBT) in a decade.

Key highlights:

• Q4FY25 Revenue: £7.7 billion (-1.7% YoY)
• EBITDA: 15.3%; EBIT: 10.7% (+150 bps YoY)
• PBT: £875 million (up from £661 million in Q4FY24)
• FY25 PBT: £2.5 billion (+15% YoY)

JLR ended the year with a net cash position of £278 million, cash balance of £4.6 billion, and total liquidity of £6.3 billion. The Range Rover and Defender brands led volume gains, while plug-in hybrid vehicle (PHEV) sales rose 21.7% YoY.

The brand also progressed with its Range Rover Electric development, now boasting a waiting list of over 61,000 and successfully tested new EV production lines at Solihull, UK.

Q4 commercial vehicles performance

Tata Motors’ commercial vehicle (CV) division posted strong profitability despite muted volumes.

Key highlights:

• Q4 Revenue: ₹21,500 crore (-0.5% YoY)
• EBITDA Margin: 12.2% (+20 bps YoY)
• EBIT: 9.7%
• FY25 PBT: ₹6,600 crore (highest-ever)

FY25 CV revenue stood at ₹75,100 crore (-4.7% YoY). Domestic market share remained robust at 37.1%, with launches including India’s first hydrogen-powered truck trials and ACE EV 1000 for last-mile deliveries.

Q4 Passenger vehicles performance

Tata Motors' passenger vehicle (PV) segment reported a revenue dip amid industry headwinds:

Key highlights:

• Q4 Revenue: ₹12,500 crore (-13.1% YoY)
• EBITDA: 7.9%; EBIT: 1.6%
• FY25 Revenue: ₹48,400 crore (-7.5%)
• FY25 PBT: ₹1,100 crore

Despite the drop, Tata retained leadership in EVs with 55.4% market share and introduced models like the Tiago.ev, Tigor, and Curvv.ev, achieving price parity with ICE variants. CNG penetration stood at 25%.

The Punch emerged as India’s top-selling SUV in FY25, while overall VAHAN registration share stood steady at 13.2%.

Going ahead the company has said that tariffs and related geopolitical tensions are making operating environment uncertain and challenging for the company.

“Tariffs and related geo-political actions are making the operating environment uncertain and challenging. 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,” Tata Motors said.

Tata Motors shares ended 1.76% lower at ₹707.90 ahead of its earnings announcement.