Tata Motors, one of India’s largest automobile manufacturers, released its financial results for the fourth quarter and full fiscal year ending 31st March 2025. The company reported a 51.2% year-on-year decline in consolidated net profit to ₹8,556 crore in Q4 FY25. This sharp decline was largely attributed to a high base effect from Q4 FY24, where the company had benefited significantly from a one-time deferred tax credit.
Despite the quarter-on-quarter profit decline, Tata Motors recorded its highest-ever annual consolidated revenue of ₹4.39 lakh crore in FY25, reflecting strength across segments, including passenger vehicles (PV), commercial vehicles (CV), and Jaguar Land Rover (JLR). The company also turned net cash positive in its automotive business by the end of FY25.
This article explores the key financial metrics, business performance, strategic outlook, and investor implications based on Tata Motors’ Q4 FY25 earnings.
Tata Motors Q4 FY25 Results: Key Financial Highlights
| Financial Metric | Q4 FY24 | Q4 FY25 | YoY Change |
|---|---|---|---|
| Total Income | ₹1.20 lakh crore | ₹1.21 lakh crore | +0.8% |
| Net Profit (Consolidated) | ₹17,529 crore | ₹8,556 crore | -51.2% |
| EBITDA | ₹17,420 crore | ₹16,700 crore | -4.1% |
| EBIT | ₹10,500 crore | ₹11,500 crore | +9.5% |
| Dividend (Proposed) | ₹2/share (FY24) | ₹6/share (FY25) | +200% |
Q4 Performance Analysis
Decline in Net Profit Due to High Base
Tata Motors reported ₹8,556 crore in consolidated net profit for Q4 FY25, significantly lower than Q4 FY24’s ₹17,529 crore. The steep decline, however, does not indicate operational weakness, but is mainly due to absence of deferred tax gains that had positively skewed the Q4 FY24 results.
Stable Revenue and Core Profitability
Total income stood at ₹1.21 lakh crore, almost flat on a year-on-year basis. However, EBIT improved by ₹1,000 crore, reaching ₹11,500 crore—demonstrating growth in core operational profitability despite a reduction in EBITDA.
The 4.1% drop in EBITDA, amounting to ₹16,700 crore, was due to temporary input cost pressures and slower-than-expected export volumes from certain subsidiaries.
FY25 Annual Highlights: A Landmark Year
Tata Motors’ FY25 results paint a strong full-year picture despite quarterly volatility.
| Metric | FY24 | FY25 | YoY Growth |
|---|---|---|---|
| Consolidated Revenue | ₹3.83 lakh crore | ₹4.39 lakh crore | +14.6% |
| Profit Before Tax (PBT)* | ₹27,300 crore | ₹34,300 crore | +25.7% |
| Net Profit | ₹24,300 crore | ₹28,100 crore | +15.6% |
| Auto Business Net Cash Position | Negative | ₹1,000 crore | Positive Turnaround |
*before exceptional items
Tata Motors’ Group CFO, P.B. Balaji, highlighted that the company crossed multiple milestones in FY25, including the highest-ever consolidated revenue, a net positive cash balance in the auto division, and significant improvements in margins across commercial vehicle operations.
Segmental Performance Overview
1. Passenger Vehicles (PV) – Tata India
Tata Motors continued to dominate the electric vehicle (EV) space in India, with strong sales of models like Nexon EV, Punch EV, and Tiago EV. The premiumization trend also benefitted Tata’s internal combustion engine (ICE) PV offerings.
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PV market share held steady in double digits.
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New model launches supported brand perception.
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EV penetration in overall Tata PV portfolio exceeded 15%.
2. Commercial Vehicles (CV)
Despite supply chain challenges and weak export demand in some regions, CV performance improved due to:
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Better pricing power.
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Focused cost-cutting and production optimization.
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Margin expansion through higher-end CV models.
3. Jaguar Land Rover (JLR)
JLR contributed significantly to consolidated revenue growth. Key drivers:
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Strong recovery in China and European markets.
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Higher ASP (Average Selling Price) from premium models.
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Gradual EV transition plans with strong demand for Range Rover and Defender series.
Strategic Developments and Growth Drivers
Net Cash Positive Auto Segment
For the first time in several years, Tata Motors ended a fiscal year net cash positive in its automotive operations. A ₹1,000 crore surplus was achieved as of March 2025. This financial turnaround provides strategic flexibility for:
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Capex investments in EV platforms.
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Debt reduction across group entities.
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Shareholder returns via dividends.
Dividend Payout: Shareholder Reward
The board of directors proposed a final dividend of ₹6 per share, subject to shareholder approval. This is a threefold increase from the previous year’s ₹2/share and highlights the company’s confidence in sustainable cash flows and profitability.
Tata Motors Share Price Movement
As of 14th May 2025:
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Stock Price: ₹696.10 per share
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Day Change: -1.60%
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52-Week High: ₹740.30
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52-Week Low: ₹551.80
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Market Cap: Approx. ₹2.30 lakh crore
Despite the 1.6% dip post-result announcement, the long-term outlook remains positive due to improved fundamentals and market leadership in emerging segments like EVs.
Macroeconomic Challenges and Risks
Although Tata Motors has demonstrated resilience, some external risks remain:
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Geopolitical Instability: European and Asian markets face uncertainties impacting JLR exports.
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Input Cost Volatility: Commodity price fluctuation and logistics issues continue to affect margins.
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EV Infrastructure Gaps: Limited charging infrastructure in India may slow EV adoption despite strong product lineup.
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Regulatory Compliance: Emission norms and safety mandates require constant technological upgrades.
Market Analyst Views
Most brokerage firms have issued neutral to positive ratings post-results. While the decline in quarterly profit drew short-term concern, the full-year metrics and operational cash surplus were seen as bullish indicators.
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Motilal Oswal: “Strong core EBIT growth validates long-term strategy. Maintain BUY with a revised target of ₹780.”
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ICICI Securities: “Profit dip is transitory. Positive on EV roadmap and JLR growth trajectory.”
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Kotak Institutional Equities: “Auto business cash flow improvement impressive. Upgrade to ADD with TP ₹730.”
Outlook for FY26
Tata Motors is expected to maintain momentum in the next fiscal year due to the following catalysts:
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New EV Launches: Multiple EVs expected under Tiago, Punch, and Sierra platforms.
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JLR EV Strategy: Major unveilings in the luxury EV category in Europe and North America.
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Rural CV Demand: Rising infra projects and agricultural activity to drive CV sales.
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Margin Expansion: Cost rationalization and input price stability to aid operating leverage.
Conclusion
Tata Motors Q4 FY25 results presented a mixed bag with a significant drop in quarterly profit but a strong full-year performance marked by record revenue and cash flow improvement. The high base effect from last year skewed Q4 comparisons, but operational metrics—including a ₹1,000 crore net cash position in the auto segment and an all-time high annual revenue of ₹4.39 lakh crore—underscore Tata Motors’ strategic progress.
With a proposed ₹6/share dividend and a consistent focus on electrification, premiumization, and global diversification, Tata Motors appears well-positioned to deliver long-term shareholder value. Investors should focus on the company’s full-year story rather than a one-quarter dip, as FY26 holds strong potential across segments.
