Tata Motors on Tuesday reported a 51 per cent decline in consolidated net profit to Rs 8,556 crore for the March quarter, hit by lower volumes and operating leverage. The auto major had posted a consolidated net profit of Rs 17,528 crore in the same quarter of the previous fiscal year, Tata Motors said in a regulatory filing.
Its total revenue from operations stood at Rs 1,19,503 crore against Rs 1,19,033 crore in the year-ago period, it added.
For the 2024-25 fiscal year, the company's consolidated net profit was Rs 28,149 crore compared to Rs 31,807 crore in the preceding financial year.
The total revenue in FY25 was Rs 4,39,695 crore against Rs 4,34,016 crore in FY24.
"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," Tata Motors CFO PB Balaji said.
Drawing strength from it, in this environment of heightened uncertainty, the automaker will remain agile, proactively drive its growth agenda, reduce cash break-even further while continuing to invest in the future, he added.
"With the shareholders also approving the demerger, we are on track to realise the full potential of each of the businesses," Balaji said.
Tata Motors noted that tariffs and related geopolitical actions are making the operating environment uncertain and challenging. The global premium luxury segment and Indian domestic markets are expected to weather this relatively better, he stated.
The company said revenue of its UK-based arm Jaguar Land Rover (JLR) stood at 7.7 billion pounds, down 1.7 per cent year-on-year, while full-year revenue stood at 29 billion pounds, almost flat compared to FY24.
"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 the global automotive sector. On 8 May 2025, we welcomed the positive announcement of a US-UK trade deal. This reduces US trade tariffs on UK auto exports to the US from 27.5 per cent to 10 per cent, within a quota of 1,00,000 vehicles. This deal brings greater certainty for our sector and stakeholders," Tata Motors stated on the JLR business. The UK-based automaker will continue to engage with the UK government on the details of the trade deal, it added.
"Our priority is to ensure we deliver for our global clients and protect EBIT through the delivery of transformation and efficiency initiatives. Looking ahead, we expect investment spend to remain at 18 billion pounds over a five-year period and will be funded by operational cash flows," the automaker stated.
On a standalone basis, Tata Motors reported a net profit of Rs 1,382 crore compared to Rs 2,126 crore, a drop of 35 per cent.
The total revenue from operations stood at Rs 19,999 crore against Rs 20,260 crore in the year-ago period.
For FY25, the net profit was Rs 5,452 crore compared to Rs 7,902 crore in FY24.
Its revenue declined to Rs 69,419 crore from Rs 73,303 crore in 2023-34.
Tata Motors said that in the fourth quarter, passenger vehicles (PV) segment volumes slipped 5.5 per cent year-on-year to 1.47 lakh units and revenues fell 13.1 per cent to Rs 12,500 crore.
"Passenger vehicle sales in India grew by a modest 2 per cent 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 per cent of the total sales and a rapidly increasing consumer preference toward environment-friendly powertrains," TMPV and TPEM Managing Director Shailesh Chandra said.
In a year marked by fluctuating demand, Tata Motors Passenger Vehicles led the industry in SUV growth and outpaced the market in CNG sales, he added. On the outlook for PVs, Tata Motors said overall demand growth will be shaped by macroeconomic factors like consumption growth, inflation, infrastructure spending and global geopolitics. However, industry momentum is expected to be driven by continued innovation in line with evolving customer preferences. SUVs, CNG, and EVs will remain key growth drivers, fuelling the industry's expansion. A well-conceived product portfolio with multiple powertrains, exciting new launches and a renewed focus on significantly improving after-sales service places Tata Motors well to regain its winning momentum, it added.
On the commercial vehicles front, Tata Motors said in Q4 FY25, domestic wholesale sales were 99,600 units, lower by 4.8 per cent compared to the year-ago period. Exports were at 5,900 units, 29.4 per cent higher year-on-year.
Its revenue was Rs 75,100 crore in FY25.
"FY25 ended on a positive note for the commercial vehicles industry, an improvement versus the YoY demand decline witnessed earlier.
"At Tata Motors, we continued to strengthen our market presence by introducing innovative mobility solutions across both passenger and cargo segments," Tata Motors Executive Director Girish Wagh said.
Looking ahead in the CV segment, Tata Motors said that with most macroeconomic indicators on track, improved fleet utilisation and stable sentiment index, it anticipates sustained growth despite global headwinds.
"We will continue to closely monitor government infrastructure spending and growth across key end-use segments. Our focus will remain to ensure smooth transition of AC regulation in trucks, coupled with value enhancements," the company said.
The company said its board recommended a final dividend of Rs 6 per share, subject to approval by the shareholders.
Shares of the company on Tuesday ended 1.76 per cent down at Rs 707.90 apiece on the BSE.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)