Tata Motors Q4 results: Net profit likely to see big fall, revenue to remain flat; check earnings preview

Automobile major Tata Motors will announce its fourth quarter results on 12 May. The results are likely to be announced after market hours.

As per experts, Tata Motors could report subdued Q4 earnings with flat growth in revenue and double-digit fall in net profit. Consolidated revenue could see marginal rise of 1 to 2% to range between ₹1.20 to ₹1.23 lakh crore, while its net profit could decline by 40 to 50% YoY to ₹7,600 to ₹8,550 crore.

EBITDA and EBITDA margin likely to be lower amid weaker performance by JLR business. Higher interest costs, forex losses and drop in volumes also likely to impact profitability.

Tata Motors reported consolidated revenues of ₹1,13,575 crore in Q3FY25 and ₹1,19,986 crore in Q4FY24. Meanwhile, its net profit stood at ₹5,578 crore in the previous quarter and ₹17,529 crore in Q4FY25.

Investors are looking forward to key metrics like Jaguar Land Rover (JLR) sales and demand trends. Management commentary on overall business outlook. and final dividend announcement for FY25 will also be tracked closely.

Ahead of the Q4 earnings announcement, Tata Motors shares closed 1.5% higher at ₹719 per share on Monday, May 12. So far this month, Tata Motors shares have gained over 11% on the back of the India-U.K. trade deal, which is positive for the company's JLR business.

Technical view

Shares of Tata Motors reclaimed its 21-day and 50-day exponential moving averages (EMAs) on the daily chart and are currently sustaining its gains. The short-term structure of the stock remains bullish with immediate support around its 50-day EMA.

Meanwhile, after breaking the initial resistance zone of ₹673 along with the downward sloping trendline, it is approaching its 200-day EMA. A close above its 200-day EMA and crucial resistance of ₹810 will further strengthen the bullish momentum. However, a rejection from this level supported by a negative candlestick pattern will signal change in the momentum.

Options outlook

Options strategy for Tata Motors

Given the implied movement of ±7% from the options market ahead of the 29 May expiry, traders can consider using long and short Straddle strategies.