Tata Motors Ltd (TML) reported its financial results for the third quarter of the financial year 2025, showing a 2.7% increase in consolidated revenue at INR 113,575 crore. While the overall performance was stable, challenges persisted in certain segments, particularly in the commercial and passenger vehicle divisions, which saw declining revenue. Meanwhile, Jaguar Land Rover (JLR) continued to drive profitability, posting record revenue and its highest EBIT margin in a decade.
JLR’s revenue for the quarter stood at £7.5 billion, reflecting a 1.5% year-on-year growth. The EBIT margin increased to 9.0%, despite a 200 basis point decline in EBITDA to 14.2%. The British luxury car division also marked its ninth consecutive profitable quarter, reaffirming its resilience in an otherwise uncertain global market. While JLR maintained momentum, the company expressed caution regarding the demand outlook, particularly in China.
Tata Commercial Vehicles (Tata CV) faced an 8.4% revenue decline, with total earnings at INR 18,431 crore. Despite the revenue drop, the segment improved its profitability, with an EBITDA margin of 12.4%, reflecting a 130 basis point increase. This improvement was largely attributed to cost-saving initiatives and government incentives under the Production Linked Incentive (PLI) scheme. The segment’s domestic wholesale volumes were slightly lower compared to the previous year but showed sequential improvement due to post-monsoon demand recovery in construction and mining.
The Passenger Vehicle (Tata PV) division also struggled, with revenue decreasing by 4.3% to INR 12,354 crore. The segment’s EBIT margin stood at 1.7%, marking a 40 basis point decline. However, the EBITDA margin increased to 7.8%, reflecting a 120 basis point improvement driven by cost controls and the PLI incentive. While the company’s electric vehicle (EV) market share remained strong at 61%, the expiration of the FAME II subsidy impacted fleet EV sales.
Free cash flow for the automotive business was INR 4,700 crore, reflecting operational improvements. However, the profit before tax (PBT) before exceptional items fell slightly to INR 7,700 crore, an INR 75 crore decline compared to the previous year. Finance costs were reduced by INR 760 crore, bringing the total down to INR 1,725 crore, aided by lower gross debt.
Looking ahead, Tata Motors expects a gradual improvement in domestic demand, driven by infrastructure investments, new product launches, and stable interest rates. JLR anticipates further wholesale growth in the next quarter but remains cautious about global economic conditions. The commercial vehicle market is expected to benefit from government spending on infrastructure, while the passenger vehicle segment will continue focusing on multi-powertrain strategies to drive future growth.
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