Trucks Do The Heavy Lifting, EVs Hold On, But Cars Stall for Tata in FY'25

Tata Motors recorded its highest-ever consolidated revenue of ₹439,695 crore for FY25, up 1.3% year-on-year, with a net profit of ₹28,100 crore. Profit before tax and exceptional items (PBT bei) stood at ₹34,330 crore — a jump of ₹4,963 crore from the previous year. These gains were aided by improved profitability in the CV business, reduced depreciation and amortisation at Jaguar Land Rover (JLR), and lower interest expenses due to a now net-debt-free automotive business. The company’s free cash flow stood at ₹22,400 crore for the year. However, Q4 revenue growth was muted at just 0.4% year-on-year to ₹119,502 crore. While PBT (bei) rose significantly by ₹2,526 crore to ₹12,068 crore, EBITDA slipped by 4.1% in the quarter, reflecting margin pressures and operational headwinds.

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Tata Motors continues to lead the Indian EV market with a 55.4% market share, despite intensifying competition. The EV segment contributed 11% of total passenger vehicle volumes in FY25. EV EBITDA margins turned positive at 6.5% in Q4, signalling a maturing operational model. However, the overall PV revenue dropped by 13.1% in Q4 and 7.5% for the full year, largely due to a significant decline in hatchback volumes. The segment posted an EBIT margin of only 0.9% for FY25, down 110 basis points, reflecting adverse operating leverage.

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While passenger vehicle volumes declined, Tata’s focus on the SUV segment paid dividends. The Punch became India’s top-selling SUV in FY25, while the newly launched Curvv and updated Tiago and Tigor models aimed to rejuvenate demand. The PV segment's revenue stood at ₹48,445 crore for FY25. Tata reported continued strength in CNG vehicles, which made up 25% of the PV portfolio, signalling customer acceptance of alternate fuels.

The CV business emerged as a bright spot, delivering record profits of ₹6,649 crore with a robust return on capital employed (ROCE) of 37.7% in FY25. Revenue declined marginally by 0.5% in Q4 to ₹21,485 crore, attributed to lower volumes, though EBITDA margins improved by 20 basis points to 12.2. Strategic product introductions such as the hydrogen-powered Prima H.28, LNG-based Prima G.55S, and bio-diesel compatible Azura T.19 demonstrated Tata’s pivot toward sustainable freight solutions.

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CV export volumes rose 29.4% in Q4, despite a 4.8% YoY drop in domestic volumes. Tata’s digitalisation efforts and ADAS-enabled smart vehicles also contributed to operational efficiency and customer engagement. 

JLR continued its profitable streak for the tenth consecutive quarter. FY25 revenue remained flat at £29.0 billion, but EBIT margins improved to 8.5%, with PBT (bei) reaching £2.5 billion — the highest in a decade. Defender sales hit a record, while plug-in hybrid electric vehicle (PHEV) sales grew 21.7% year-on-year.

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Key developments included successful EV production trials at the Solihull plant and a notable U.S.-UK trade deal reducing tariffs from 27.5% to 10% on up to 100,000 vehicles. The upcoming Range Rover Electric remains on track, with a waiting list exceeding 61,000. Two major corporate actions — the demerger of the CV and PV businesses, and the merger of Tata Motors Passenger Vehicles Ltd. with the parent company — were cleared by shareholders and are pending regulatory approvals.