Tata Motors Posts ₹4.39 Lakh Crore Revenue in FY25, Turns Debt-Free Ahead of Demerger by Year-End

Tata Motors has announced a major financial milestone as the group becomes net debt-free in FY25, supported by strong performances across its Commercial Vehicles (CV), Passenger Vehicles (PV), and Jaguar Land Rover (JLR) divisions. The update comes as the company moves closer to completing its planned demerger, under which Tata Motors will split into two independently listed entities—one focusing on commercial vehicles, and the other on passenger vehicles and JLR—by the end of the 2025 calendar year.

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The Commercial Vehicles division continued to perform robustly, delivering revenues of ₹75,100 crore. The segment recorded its highest-ever EBITDA at ₹8,800 crore, generating ₹7,500 crore in free cash flows and delivering a strong return on capital employed (ROCE) of 37.7%. The business gained market share in trucks and buses, although the company acknowledged underperformance in the small commercial vehicle segment—a focus area for improvement in the current year. 

In the PV segment, Tata Motors has seen continued success with models like the Tata Punch, which emerged as India’s best-selling SUV in 2024. The company’s push toward powertrain diversification has also paid off, with EVs and CNG models together accounting for 36 per cent of the portfolio. The PV business generated ₹48,445 crore in revenue, with EBIT at 0.9 per cent. Margins improved due to disciplined cost control and increased localisation, leading to a 40-basis point rise in EBITDA over FY24.

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Jaguar Land Rover also posted a solid performance, aligned with earlier guidance. JLR reported revenues of £28.9 billion and an EBIT margin of 8.5 per cent, resulting in a profit before tax (PBT) of £2.5 billion. Notably, JLR turned net cash positive this year. Key contributors included sustained demand for the Range Rover and Defender models. In India, the company also initiated CKD (completely knocked down) assembly of the Range Rover and Range Rover Sport, which is expected to improve accessibility and pricing for Indian consumers.

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On a consolidated level, Tata Motors delivered record-high financials with total revenues of ₹4,39,695 crore, EBITDA of ₹57,649 crore, and a PBT (before exceptional items) of ₹34,330 crore.