Tata Motors shares fell 2% after the automaker reported a sharp 51.7% year-on-year (YoY) decline in consolidated net profit for Q4 FY25. The company posted a net profit of ₹8,470 crore, significantly down from ₹17,552 crore in Q4 FY24, primarily due to the absence of one-time gains that boosted last year’s figures.
Revenue for the quarter stood at ₹1.2 lakh crore, up just 0.4% YoY, falling short of NDTV Profit and Bloomberg estimates of ₹1.23 lakh crore. However, operational performance remained steady. EBITDA rose marginally by 0.6% YoY to ₹16,644 crore, slightly above the estimated ₹16,308 crore.
EBITDA margin (operating profit margin) improved by 10 basis points to 14%, beating the forecasted 13.3%, supported by effective cost control measures and improved segmental efficiencies.
Despite the sharp decline in bottom-line profitability, Tata Motors’ core operations held firm. The muted revenue growth and lower net profit highlight the impact of high base effect and lack of exceptional items.
In the meantime, Jefferies downgraded Tata Motors to ‘Underperform’ with a ₹630 target, citing JLR risks, US tariff concerns, and muted EV demand. CLSA maintained an ‘Outperform’ rating with a ₹805 target, highlighting margin resilience and strong free cash flow from JLR.
Citi noted stronger-than-expected India CV and JLR margins, but flagged caution around FY26 due to geopolitical risks and softening retail demand.
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