Tata Motors logs record FY25 performance, consolidated business turns debt-free

The company posted a net profit (PAT) of ₹28,100 crore for the year, supported by improved profitability in the commercial vehicles segment, lower depreciation at Jaguar Land Rover (JLR), and reduced interest costs.

Profit before tax and exceptional items (PBT bei) stood at ₹34,300 crore, marking an increase of ₹5,000 crore over the previous year. Consolidated EBITDA for the year came in at ₹57,600 crore.

The group turned net auto cash positive in FY25, with a net cash balance of ₹1,000 crore.

Finance costs reduced by ₹2,510 crore to ₹5,083 crore, reflecting a lower gross debt position.

However, profits from joint ventures and associates declined to ₹288 crore, compared to ₹700 crore in FY24.

In the fourth quarter of FY25, consolidated revenue rose marginally to ₹1.2 lakh crore. EBITDA declined by 4.1% to ₹16,700 crore, while PBT (bei) rose to ₹12,100 crore. Net profit (PAT) for the quarter stood at ₹8,600 crore. The Board recommended a final dividend of ₹6 per share, subject to shareholder approval.

Jaguar Land Rover posts decade-best annual profit

JLR reported its tenth consecutive profitable quarter, closing FY25 with annual revenue of £29.0 billion. For the full year, PBT (bei) rose 15% to £2.5 billion, the highest in a decade. EBIT margin for the quarter improved to 10.7%, up 150 basis points year-on-year.

JLR’s free cash flow for FY25 was £1.5 billion, and the business achieved its net cash positive target with a year-end net cash balance of £278 million. Total liquidity stood at £6.3 billion.

The company noted stronger wholesale volumes for models like the Defender and Range Rover Sport, increased global plug-in hybrid (PHEV) sales, and progress in its EV roadmap, including successful testing of new electric vehicle lines at its Solihull plant.

Commercial Vehicles segment maintains profitability despite volume decline

Tata Motors’ commercial vehicles (CV) business posted a Q4 FY25 revenue of ₹21,500 crore, a marginal decline of 0.5% year-on-year, as domestic wholesale volumes fell 4.8%.

However, EBITDA and EBIT margins improved to 12.2% and 9.7%, respectively, aided by better realisations.

For FY25, CV revenue stood at ₹75,100 crore, with a record PBT (bei) of ₹6,649 crore.

The company launched over 44 products and 139 variants during the year and piloted hydrogen-powered heavy-duty trucks.

Passenger Vehicles revenue drops, EV share rises

The passenger vehicles (PV) business recorded Q4 revenue of ₹12,543 crore, down 13.1% year-on-year, due to lower volumes and realisations.

EBIT margin declined by 130 basis points to 1.6%, though EBITDA margin improved to 7.9%.

For the full year, PV revenue fell 7.5% to ₹48,445 crore, and PBT (bei) stood at ₹1,083 crore.

Despite the revenue dip, the company maintained a steady Vahan market share of 13.2% and held a 55.4% share in the EV segment.

EV penetration in the PV portfolio reached 11%, while CNG vehicles accounted for 25%.

Tata Motors also unveiled several new and updated models, including the electric Harrier and the Avinya X concept.

Cautious outlook amid trade uncertainties

Tata Motors flagged geopolitical tensions and tariff-related disruptions as concerns for the upcoming year but expressed confidence in the resilience of the luxury and Indian domestic auto markets.

The company plans to maintain tight cost control, focus on customer service, and continue investments aligned with its growth strategy.