Tata Motors Q4 net profit falls 51% to Rs 8,556 crore, declares Rs 6 dividend per share
The fall was primarily attributed to lower volumes and reduced operating leverage.
The company's consolidated revenue from operations stood at Rs 1,19,503 crore, marginally up from Rs 1,19,033 crore in Q4FY24.
For the full financial year 2024-25, Tata Motors posted a consolidated net profit of Rs 28,149 crore, compared to Rs 31,807 crore in the previous fiscal. Annual revenue increased slightly to Rs 4,39,695 crore, up from Rs 4,34,016 crore in FY24, as reported news agency PTI.
'On a consolidated basis, the automotive business is now debt-free, reducing interest costs. This is both pleasing and significant as it reflects healthy business fundamentals delivered by a resilient team,' said Tata Motors CFO P.B. Balaji.
He added that despite heightened uncertainty, the company will remain agile, focus on growth, reduce cash break-even, and continue future investments.
'With the shareholders also approving the demerger, we are on track to realise the full potential of each of the businesses,' Balaji noted.
JLR business and trade developments
Revenue for Tata Motors' UK-based luxury arm, Jaguar Land Rover (JLR), was 7.7 billion pounds, down 1.7% year-on-year. Full-year revenue held steady at 29 billion pounds.
The company addressed global trade issues, stating 'In April 2025, we implemented a series of short-term actions to address the immediate impact of trade tariffs introduced by the US Administration. On 8 May 2025, we welcomed the positive announcement of a US-UK trade deal.'
This deal lowers US tariffs on UK auto exports from 27.5% to 10% within a quota of 1,00,000 vehicles, offering greater certainty for the sector. JLR will continue to engage with UK authorities on the deal's implementation.
JLR reaffirmed plans to spend 18 billion pounds over the next five years, funded by operational cash flows, while prioritizing transformation and efficiency initiatives.
Standalone performance and segment insights
On a standalone basis, Tata Motors posted a net profit of Rs 1,382 crore for Q4, down 35% from Rs 2,126 crore in the year-ago quarter.
Revenue dropped to Rs 19,999 crore from Rs 20,260 crore.
For FY25, standalone net profit fell to Rs 5,452 crore from Rs 7,902 crore, with revenue declining to Rs 69,419 crore from Rs 73,303 crore in FY24.
Passenger vehicles (PV)
In Q4, PV volumes declined 5.5% year-on-year to 1.47 lakh units, while revenue fell 13.1% to Rs 12,500 crore.
'Passenger vehicle sales in India grew by a modest 2% in FY25 but set a new record with over 4.3 million units sold.
This growth was fuelled by the rising popularity of SUVs — which accounted for 55% of total sales — and a rapidly increasing preference for environment-friendly powertrains,' said Shailesh Chandra, MD of Tata Motors Passenger Vehicles and Electric Mobility.
The company said it led the SUV category and outpaced the market in CNG vehicle sales in a year of fluctuating demand.
Looking ahead, Tata Motors expects PV demand growth to be shaped by macroeconomic factors including consumption trends, inflation, infrastructure spending, and geopolitics.
Innovation, especially in SUVs, CNG, and EVs, will drive future momentum.
Commercial vehicles (CV)
In Q4 FY25, domestic wholesale CV sales were 99,600 units, a 4.8% decline year-on-year. Exports rose 29.4% to 5,900 units. CV segment revenue for the full year stood at Rs 75,100 crore.
'FY25 ended on a positive note for the commercial vehicles industry... We continued to strengthen our market presence by introducing innovative mobility solutions across both passenger and cargo segments,' said Executive Director Girish Wagh.
Tata Motors anticipates sustained CV growth amid improving fleet utilization and stable macroeconomic indicators. The company will monitor infrastructure investments and transition smoothly to AC regulation in trucks, it added.
Market performance
The company's Board recommended a final dividend of Rs 6 per share, subject to shareholder approval. Shares of Tata Motors closed 1.76% lower at Rs 707.90 apiece on the BSE on Tuesday.
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