Tata Motors Q4, Full-year FY25 Profit Declines

Tata Motors Ltd on Wednesday reported that its net profit for the fourth quarter and full financial year 2025 plunged 51% and 28% on year, respectively. The significant drop in profit can be primarily attributed to a one-time tax gain recorded in the year-ago period. However, the company’s operating profit also fell as volumes were lower.

For the quarter that ended March 31, the Indian automaker clocked a consolidated net profit of Rs 8,470 crore, down from Rs 17,407 crore in the year-ago quarter. The full-year net profit declined to Rs 27,830 crore from Rs 31,399. The consolidated numbers include Jaguar Land Rover, and commercial vehicle and passenger vehicle businesses.

This considerable drop in net profit reflects the tax credit in the year-ago period. Tata Motors had reported a significant rise in its net profit in the year-ago period following a one-time benefit in the form of deferred tax write-back.

However, Tata Motor’s operating profit, or EBITDA, for the full and the fourth quarter also declined 5.5% to Rs 57,649 crore and 4% to Rs 16697 crore, respectively. Revenue from operations during the quarter remained almost flat at Rs 119,502 crore while revenue for the full year increased marginally by around 1% to Rs 439,695 crore.

The weakness in revenue reflects the automaker’s volumes during the period. Tata Motor’s global wholesales fell 2.9% on year in the quarter to 366,000 units and it 2.8% in the year to 1,342,000 units. 

EBITDA margin, or operating profit margin, contracted during the quarter to 14.0% from 14.6% in the year-ago period while for the full year, the margin shrank to 13.1% from 14.1%.

“TML group turned net auto cash positive in FY25 with net cash balance of ₹1.0K Cr. Lower depreciation and amortization at JLR, better CV profitability and savings in interest cost were partially offset by lower volumes and lower operating leverage,” the company said.

Jaguar Land Rover reported quarterly revenue of £7.7 billion, a 1.7% year-over-year (YoY) decrease, while its full-year revenue of £29.0 billion remained flat YoY. Its profit before tax in the quarter was £875 million, up from £661 million in the year-ago period, while the full-year PBT rose 15% on year to £2.5 billion.

“JLR has ended the year with strong annual and quarterly earnings, including delivering our tenth consecutive profitable quarter and our net debt zero target,” said Adrian Mardell, JLR Chief Executive Officer.

Commercial vehicle business revenue was marginally down by 0.5% YoY to Rs 21,500 crore during the quarter and declined 4.7% to Rs 75,053 crore. On the passenger vehicle front, which includes Tata Motors branded cars, revenue for the quarter fell 13.1% on year to Rs 12,543 crore while for the full year, the revenue fell 7.5% to Rs 48,445 crore.

“Our focus on profitable growth enabled the CV business to deliver annual revenues of ₹75.1K crore and PBT of Rs 6.6K crore and strong ROCE of 37.7% in FY25,” said Girish Wagh, Executive Director Tata Motors.

Tata Motors Passenger Vehicle Managing Director, Shailesh Chandra noted that the company reached two major milestones in FY2025 – Crossed a total of 6 million passenger vehicle sales and surpassed 200,000 electric vehicle sales. “Overall, the business recorded annual turnover of ₹48.4K crore and PBT of ₹1.1K crore in FY25,” he added.