Tata Motors reported a 51% year-on-year (YoY) decline in consolidated net profit, amounting to ₹8,470 crore for Q4FY25, causing its shares to fall 3% to ₹686 on BSE. Revenue remained flat at ₹1.19 lakh crore, but the company still outperformed Street expectations, exceeding the ET Now poll estimate of ₹7,669 crore. EBITDA for the quarter fell 4% YoY to ₹16,700 crore, with margins narrowing 60 basis points to 14%, both figures surpassing estimates of ₹16,331 crore and 13.3%, respectively.

The automotive business is now debt-free on a consolidated basis, reducing interest costs, a point highlighted by PB Balaji, Group CFO, as a reflection of healthy business fundamentals.

Jaguar Land Rover's (JLR) revenue for the quarter was £7.7 billion, a 1.7% YoY decrease, while full-year revenue remained flat at £29 billion. Pre-tax profit (PBT) in Q4FY25 rose to £875 million from £661 million in Q4 FY24, driven by higher volumes and reduced depreciation and amortisation (D&A), partially offset by increased Variable Marketing Expense (VME). The EBIT margin for the quarter expanded 150 bps YoY to 10.7%. Defender wholesales hit a record in FY25 at 115,404 units, with Range Rover Sport wholesales up 20% YoY. Adrian Mardell, JLR CEO, noted the company's strong annual and quarterly earnings, achieving its tenth consecutive profitable quarter and net debt zero target. JLR addressed US trade tariffs by implementing short-term actions, benefiting from a US-UK trade deal reducing tariffs on UK auto exports to the US from 27.5% to 10% within a quota of 100,000 vehicles. Investment spend is projected to remain at £18 billion over five years, funded by operational cash flows.

In the Commercial Vehicles (CV) segment for Q4FY25, domestic wholesale volumes were 99,600 units, down 5% YoY, while exports increased by 29.4% YoY to 5,900 units. Revenues slightly decreased by 0.5% YoY to ₹21,500 crore due to lower volumes. However, EBITDA and EBIT margins improved to 12.2% (up 20 bps YoY) and 9.7% (up 10 bps YoY), respectively, driven by better realizations. For the full year, EBITDA was up at 11.8% despite a 4.7% decline in overall revenues, attributed to optimized mix and realizations. The business achieved record profits of ₹6,600 crore during the year. Girish Wagh, Executive Director, Tata Motors, emphasized the commitment to sustainable and profitable growth and improving market share across all business segments.

Passenger Vehicles (PV) segment volumes in Q4 were 147,000 units, a 5% YoY decline, with revenues also declining 13% YoY to ₹12,500 crore. EBIT margin contracted 130 bps to 1.6%, impacted by lower volumes and realizations, partially offset by cost savings and incentives. The PV (ICE) business delivered EBITDA margins of 8.2%, and the EV business was EBITDA positive at 6.5%. On a full-year basis, PV business revenue declined by 7.5%, primarily due to a decrease in hatch volumes. However, FY25 EBITDA margins improved by 40 bps, while EBIT margins declined by 110 bps due to adverse operating leverage and increased depreciation and amortization. Shailesh Chandra, MD, Tata Motors Passenger Vehicles, highlighted the company's industry leadership in SUV growth and outperformance in CNG sales, increasing the share of CNG and electric vehicles to 36% of the overall portfolio. The company anticipates industry momentum to be driven by innovation aligned with customer preferences, with SUVs, CNG, and EVs as key growth drivers. Free cash flow (automotive) for the year stood at ₹22,400 crore compared to ₹26,900 crore in FY24, owing to cash profits and favorable working capital.