A part of the Tata Group and India’s leading automaker, Tata Motors, has announced its financial results for the quarter ending March 2025. The company seems to be struggling, which is evident from its flat revenue and shrinking profits during the quarter. Even on an annual basis, the company’s revenue barely grew while profits went down. Let’s understand what’s wrong with Tata Motors in detail.
Key highlights:
- Tata Motors’ Q4 FY25 revenue grew just 0.5% YoY to ₹1,21,012 crore, while profit fell sharply by 51.6% to ₹8,556 crore.
- On a full-year basis, FY25 revenue rose 1.4% YoY to ₹4,45,939 crore, but profit dropped 11.5% to ₹28,149 crore.
- Passenger vehicle sales fell 5.5% YoY in Q4, causing a 13.1% drop in revenue to ₹12,543 crore.
- Commercial vehicle sales declined 4.8% YoY in Q4 to 99,600 units; revenue from this vertical fell slightly to ₹21,487 crore.
- JLR met its 8.5% EBIT margin target but paused confirmation of its 10% margin goal due to UK–US trade uncertainty.
- Tata Motors stock price fell 1.73% today (May 13, 2025) to ₹708.3; the stock is down 26.2% in the last 12 months.
- Tata Motors announced a ₹6 per share dividend, subject to shareholder approval.
Tata Motors’ Revenue Remains Flat in Q4
Tata Motors recorded a mere 0.5% growth in revenue to ₹121,012 crore during Q4 FY25 as compared to ₹120,431 crore revenue generated in Q4 of FY24. Following the cost-cutting measures, its total expenditures shrank around 2% to ₹109,056 crore during the same period.
Despite the cost control, the profits of the company dropped 51.6% to ₹8,556 crore during Q4 against ₹17,673 crore booked in the same quarter of the previous fiscal year. It's worth highlighting that, in Q4 FY24, it booked ₹9,538 crore under deferred taxes, which led to an exceptional jump in the company’s profits during the period.
| Financials | Q4 FY25 (₹ Cr) | Q4 FY24 (₹ Cr) | YoY Change |
| Total revenue | 121,012 | 120,431 | 0.5% |
| Total expenses | 109,056 | 111,136 | -1.9% |
| Profit after tax | 8,556 | 17,673 | -51.6% |
Source: Company filings
During the quarter, the company spent the most on the cost of materials (including stock purchases and changes in inventories), which accounted for 68.1% of the total cost. This cost, however, remained flat at ₹74,217 crore during the period. Spends on employee benefits went up 12.5% to ₹12,663 crore and formed 11.6% of the total expenditure.
Coming to the annual performance of the company, Tata Motors’ total revenue grew only 1.4% to ₹4,45,939 crore in FY25 as compared to $4,39,708 crore posted in FY24. The annual profits of the company slipped 11.5% to ₹28,149 crore during the year in contrast to ₹31,807 crore booked in the previous fiscal year (FY24). In the last ten years, the company managed to grow its sales at an annual rate of 5.3%.
| Financials | FY25 (₹ Cr) | FY24 (₹ Cr) | YoY Change |
| Total revenue | 445,939 | 439,708 | 1.4% |
| Total expenses | 411,896 | 411,040 | 0.2% |
| Profit after tax | 28,149 | 31,807 | -11.5% |
Source: Company filings
How Does Tata Motors Make Money?
Commercial Vehicles: Tata Motors is India’s largest commercial vehicle manufacturer, offering products including Trucks, cargo carriers, tippers, buses, and heavy-duty vehicles for diverse industries like logistics, construction, and mining. During Q4, it made ₹21,487 crore from this vertical, which saw a decrease in revenue of 0.5% YoY.
Passenger Vehicles: The company’s passenger vehicles segment includes compact hatchbacks like the Tiago and Altroz, sedans like the Tigor, and rugged SUVs like the Nexon, Harrier, and Safari. Its EV range features the Tiago EV, Tigor EV, and Nexon EV. This segment saw a YoY drop of 13% in Q4 to ₹12,543 crore.
Jaguar Land Rover (JLR): JLR represents Tata Motors’ luxury segment, offering Jaguars like the F-PACE and iconic Land Rover SUVs like the Range Rover Velar. Collections from this segment formed 71.1% of the total operating revenue during the quarter. The vertical grew 2.4% YoY to ₹84,957 crore in Q4.
Vehicle Financing, Fleet Management, and others: The company also provides vehicle financing, fleet management, and other solutions.
What’s Wrong With Tata Motors?
Lower Sales Volumes: In Q4 FY25, the sales volumes of passenger vehicles shrank 5.5% YoY to 1.47 lakh units, which led to a revenue drop of 13.1% to Rs 12,543 crore. While the sales of commercial vehicles declined 4.8% to 99,600 units in Q4, this further impacted the top line of the company.
Jaguar Land Rover (JLR) Challenges: The revenue from this vertical grew 2.4%, considering the Indian currency while if we account for its native currency (Since JLR sells a lot of foreign-made vehicles in the U.S.), British Pounds (GBP), the revenue from this vertical also dropped 1.7% to £7.7 billion during the Q4 FY25. This is because JLR, though it sells vehicles globally (including the U.S.), is a UK-based company and reports its earnings in GBP.
In Q4, JLR met its previous EBIT margin target of 8.5%, however, it is still assessing the guidance for the current fiscal year following the UK-US trade deal announced on May 8. It will provide an update on 16 June.
Share Price Performance and Dividend
Tata Motors’ share price went down 1.73% today (May 13, 2025) to ₹708.3 per share. This was, however, based on earnings assumptions and the broader market, as Nifty slipped 1.39% and Sensex shrank 1.55% today.
The share price of the company has slipped 5.47% on a year-to-date basis while in the last 12 months, it has dropped 26.20%. It made the 52-week high of ₹1,179 during July 2024.
Along with the quarterly results, Tata Motors also announced a dividend of ₹6 per share, subject to approval by the shareholders. For more details about the dividend history, visit here.
Summary
Tata Motors reported its Q4 FY25 results, which showed a significant decline in profit and flat revenue growth. The company’s revenue grew marginally by 0.5% YoY to ₹121,012 crore, while profit after tax dropped by 51.6% to ₹8,556 crore. For the full fiscal year, Tata Motors' revenue grew by just 1.4% to ₹4,45,939 crore, but profits declined by 28.3% to ₹23,278 crore. Key issues for the weak earnings include a 5.5% drop in passenger vehicle sales and a 4.8% decline in commercial vehicle sales during Q4 FY25. Tata Motors’ share price has been on a downward trajectory, falling by 26.2% in the past 12 months. As of today, the company’s market capitalization stands at ₹2,60,693 crore.
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