Jaguar Land Rover (JLR), a subsidiary of Tata Motors, reported a robust performance for the third quarter of FY25, with revenue reaching £7.5 billion, marking a 1.5% year-on-year increase. The company also recorded its highest EBIT margin in a decade and continued its streak of nine consecutive profitable quarters.
JLR’s EBITDA margin for Q3 stood at 14.2%, reflecting a decline of 200 basis points year-on-year, while EBIT improved to 9.0%, up by 20 basis points. The company posted a profit before tax (PBT) of £523 million, lower than the £627 million recorded in the same quarter of the previous year. For the year-to-date (YTD) FY25 period, revenue remained stable at £21.2 billion, with PBT increasing by 7% YoY to £1.6 billion.
The company attributed its improved profitability to higher volumes, a better product mix, and lower depreciation and amortisation expenses, driven by the cessation of production at the Castle Bromwich plant and the end-of-life extension of internal combustion engine (ICE) models. However, these gains were partially offset by an increase in vehicle market expenses, warranty costs, and unfavourable foreign exchange revaluation.
JLR’s cash balance at the end of the quarter stood at £3.5 billion, with net debt reduced to £1.1 billion, while total liquidity, including its revolving credit facility, was £5.1 billion.
Future plans and electrification drive
JLR is progressing with its electrification plans, as indicated by a growing waitlist for the Range Rover Electric, now at 57,000 customers. Sales of Range Rover plug-in hybrid electric vehicles (PHEVs) grew by 163% year-on-year in Q3, reflecting rising consumer demand for electrified models. The company also made advancements in sustainability by delivering an industry-first recycled seat foam concept, which will be incorporated into future vehicles.
JLR’s investments in new paint facilities in Castle Bromwich, UK, and Nitra, Slovakia, aim to support growing demand for vehicle personalisation while reducing emissions. The company is also collaborating with Tata Communications to implement the MOVE™ platform, which will enhance vehicle connectivity, particularly in remote locations from 2026.
CEO’s statement and outlook
Adrian Mardell, CEO of Jaguar Land Rover, highlighted the company’s strong quarterly performance, stating, “JLR has delivered a robust performance in the third quarter of our financial year, and further milestones in our Reimagine strategy. Thanks to our people and partners, we achieved record revenue and our best EBIT margin in a decade. Our electrification plans are progressing, and later this year, we will launch the Range Rover Electric.”
Looking ahead, JLR remains optimistic about achieving its profitability and cash flow targets for FY25, with an expected EBIT margin of at least 8.5% and continued positive net cash generation.
