Tata Motors Q4 Results: Cons PAT Drops 51% YoY, Allots Rs 500 crore NCDs; JLR Hits 10th Profitable Quarter

Tata Motors, the automobile giant of the Tata Group, recorded a 51% year-on-year decline in consolidated net profit to Rs 8,470 crore during the fourth quarter of FY25. Along those lines, operating profit (EBITDA) dipped by 4% YoY to Rs 16,700 crore, with EBITDA margins contracting by 60 basis points to 14%. Its luxury brand, JLR, reported its tenth profitable quarter.

On the top-line front, Tata Motors posted muted growth in revenue to Rs 1.19 lakh crore in Q4FY25 compared to the same quarter a year ago.

For the entire financial year 2024-25, Tata Motors reported all-time high revenue of Rs 439.7K crore with EBITDA at Rs 57.6K crore, the highest ever PBT(bei) of Rs 34.3K crore (+Rs 5.0K crore over the previous year) and net profit of Rs 28.1K crore.

Additionally, TML group turned net auto cash positive in FY25 with net cash balance of Rs 1.0K crore. It said, lower depreciation and amortization at JLR, better CV profitability and savings in interest cost were partially offset by lower volumes and lower operating leverage.

Talking about the performance, PB Balaji, Group Chief Financial Officer, Tata Motors said, "Despite external headwinds, Tata Motors sustained its strong performance in FY25, delivering its highest ever revenues and PBT(bei). 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. Drawing strength from it, in this environment of heightened uncertainty, we will remain agile, proactively drive our growth agenda, reduce our cash breakeven further whilst continuing to invest in our future. With the shareholders also approving the demerger, we are on track to realise the full potential of each of the businesses."

Going ahead, Tata Motors expect challenges from tariffs and geo-political events.

"Tariffs and related geo-political 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," Tata Motors said in its regulatory filing.

Jaguar Land Rover (JLR) Q4 Results:

This luxury carmaker's Q4 FY25 revenue was at £7.7 billion, down 1.7% YoY, while full year revenue stood at £29.0 billion which was flat YoY.

Meanwhile, EBIT margin for the quarter was 10.7%, up 150 bps compared to Q4 FY24 and for the full year was 8.5%, the best Q4 and full year EBIT margin in a decade. The increase in profitability year-on-year reflects higher volumes and a reduction in depreciation and amortisation (D&A), partially offset by an increase in VME.

JLR reported tenth consecutive profitable quarter. Its profit before tax came in at £875 million, which more than doubled from £ 214 million on year-on-year basis.

Adrian Mardell, JLR Chief Executive Officer, said, "JLR has ended the year with strong annual and quarterly earnings, including delivering our tenth consecutive profitable quarter and our net debt zero target. We have achieved record sales of Defender, revealed the stunning Jaguar Type 00 and we are preparing to launch the wonderful Range Rover Electric. This strong and consistent performance, the commitment of our people, partners and clients and the appeal of our luxury brands will support our response to current global economic challenges including the evolving global trading environment."

Looking ahead, JLR has predicted investment spend to remain at £18 billion over a five year period and will be funded by operational cash flows. While the company continues to evaluate the impact of global challenges and will provide an update at its Investor Day on 16 June 2025.

Tata Commercial Vehicles Q4 Results:

As per the regulatory filing, in Q4 FY25, domestic wholesale CV volumes were 99.6K units, lower 4.8% YoY. Exports were at 5.9K units increasing 29.4% YoY. Revenues were marginally down by 0.5% YoY to Rs 21.5K Crore on account of lower volumes. EBITDA and EBIT margins of 12.2% (up 20 bps YoY) and 9.7% (up 10 bps YoY), respectively were delivered, driven primarily on account of improvement in realizations.

While overall revenues declined by 4.7% for the full year fiscal, EBITDA margins came in at 11.8% (up 100 bps YoY) as mix and realisations are optimized. The business delivered highest ever profits of Rs 6.6K crore and strong ROCE of 37.7%.

Tata Passengers Vehicles Q4 Results:

During the fourth quarter, this subsidiary's PV segment volumes were at 147.0K units (-5.5% YoY). Revenues in Q4 were at Rs 12.5K crore down 13.1% YoY, while EBIT margin was at 1.6%, down 130 bps YoY impacted by lower volumes and realizations, partially offset by cost savings and incentives. In Q4, PV (ICE) business delivered EBITDA margins of 8.2% and EV business was EBITDA positive at 6.5%.

On full year basis, the PV business revenue declined by 7.5%. The decline in revenues was primarily on account of decline in hatches volumes. FY25 EBITDA margins improved by 40 bps, whereas EBIT margins were adverse by 110 bps on account of adverse operating leverage and increase in depreciation & amortization, as per the filing.

Tata Motors NCDs:

Apart from Q4 results, Tata Motors announced the allotment of 50,000 Rated, Listed, Unsecured, Redeemable, NCDs in multiple series/tranches of face value Rs 1,00,000/- each at par aggregating Rs 500 crore on private placement basis on May 13.

The allottees are major bankers like Axis Bank, Yes Bank, and ICICI Bank. Credit Rating - Credit Rating Information Services of India Limited (CRISIL) has assigned Crisil AA+/Stable rating on these NCDs. The NCDs are proposed to be listed on the Wholesale Debt Market Segment of National Stock Exchange of India Limited.