Tata Motors Q3 Results: Profit Declines 23% to ₹5,451 Crore and Highest EBIT Margin
Tata Motors Ltd: Overview
Tata Motors Ltd. is one of India’s largest automobile manufacturers, engaged in the design, manufacturing, and sales of a diverse range of vehicles, including passenger cars, commercial vehicles, electric vehicles (EVs), and luxury vehicles. A subsidiary of Tata Group, the company operates in both domestic and international markets, with a strong presence in the UK, South Korea, Thailand, South Africa, and other global regions. The Indian automotive industry, in which Tata Motors plays a crucial role, is witnessing rapid transformation with increasing demand for electric vehicles (EVs), connected car technologies, and sustainable mobility solutions. With government initiatives such as FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles), the push towards EV adoption is accelerating. Tata Motors has positioned itself at the forefront of this transition, leveraging its advanced research & development capabilities and extensive manufacturing infrastructure.
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In Q3 FY25, Tata Motors reported a revenue of ₹113.6K crore with an EBITDA margin of 13.7% and a profit before tax (PBT) before exceptional items of ₹7.7K crore. Despite challenging market conditions, the company remains on track for a strong full-year performance, with a year-to-date (YTD) PBT of ₹22.3K crore. Net auto debt stood at ₹19.2K crore, with the deleveraging plan progressing well, leading to a significant reduction in net auto finance costs. The TML Group received a sanction letter from the Ministry of Heavy Industries (MHI) on December 31, 2024, approving the entire FY24 claim of ₹142 crore, which has now been received. For FY25, the Group assessed its product eligibility under the scheme and accrued an income of ₹209 crore, with the required Techno-Commercial Audit (TCA) completed.
In the luxury segment, Jaguar Land Rover (JLR) saw an improved sales mix, with Range Rover, Range Rover Sport, and Defender accounting for 70% of total wholesales. Market share improved across all segments except for Small Commercial Vehicles (SCVs), where efforts are underway to enhance competitiveness. The overall industry volume remained flat in Q3 FY25, marking a recovery from the 11% YoY decline seen in Q2. During the quarter, the Passenger Carrier segment grew by 11%, SCVPU by 3%, while ILMCV remained stable, and HCV declined by 9%. Electric mobility continued to gain traction, with over 200 EV buses registered in Q3 FY25, bringing the total number of EV buses registered to over 3,500. Tata Motors’ Fleet Edge platform now has over 760,000 active vehicles, with strong user engagement—81% monthly active users and 61% weekly active users—demonstrating its growing influence in fleet management and digital solutions.
Business Segments
- Passenger Vehicles (PV): This segment includes hatchbacks, sedans, SUVs, and electric vehicles under the Tata brand. Key models: Tata Safari, Harrier, Nexon, Tiago, and electric models like Nexon EV, Tigor EV, and Tiago EV. The company has seen strong demand for EVs, making it a market leader in the Indian EV space.
- Commercial Vehicles (CV): Tata Motors is a market leader in the commercial vehicle segment, including trucks, buses, and small commercial vehicles (SCVs). The company offers a range of products, from light-duty to heavy-duty trucks, along with electric and alternative fuel-based commercial vehicles. Recent launches include electric buses and CNG-powered trucks to support sustainability.
- Jaguar Land Rover (JLR): A wholly owned subsidiary, JLR is a premium automotive brand with iconic models like the Range Rover, Defender, and Jaguar F-PACE. JLR contributes significantly to Tata Motors’ revenue, with strong demand from Europe, the US, and China. The company is focusing on electrification, with upcoming EV models and hybrid variants.
Subsidiary Information
- Jaguar Land Rover (JLR): It is a prestigious UK-based luxury automobile manufacturer and a wholly owned subsidiary of Tata Motors. It plays a crucial role in the company’s global presence, significantly contributing to its overall revenue. With a strong brand reputation, advanced engineering, and a diverse portfolio of premium vehicles, JLR remains one of Tata Motors’ most valuable assets.
- Tata Passenger Electric Mobility Ltd: It is a dedicated subsidiary focused on the research, development, and manufacturing of electric vehicles. As the Indian EV market continues to expand, this subsidiary has positioned Tata Motors as a leader in the country’s electric mobility space. Through innovation and a growing portfolio of electric vehicles, it plays a vital role in the company’s sustainability and future growth strategy.
- Tata Technologies Ltd: It is a prominent provider of engineering and design services, specializing in automotive product development, digital transformation, and manufacturing solutions. It supports Tata Motors and other global clients in optimizing vehicle design, enhancing efficiency, and integrating cutting-edge technologies into the automotive sector.
- TML Holdings Pte Ltd: Headquarter is in Singapore, serves as the international investment arm of Tata Motors. It oversees and manages the company’s overseas subsidiaries and investments, including operations in Thailand, South Korea, and other global markets. This entity plays a critical role in Tata Motors’ international expansion and strategic growth initiatives.
- Tata Marcopolo Motors Ltd: It is a joint venture between Tata Motors and the Brazilian bus manufacturer Marcopolo S.A. The company specializes in producing high-quality buses, catering primarily to mass public transportation needs. By leveraging Tata Motors’ automotive expertise and Marcopolo’s bus manufacturing know-how, the venture has become a key player in the commercial vehicle sector, supplying buses to both domestic and international markets.
Q3 FY25 Earnings
- Revenue of ₹113575 crore in Q3 FY25 down by 3.012.71% YoY from ₹110577 crore in Q3 FY24.
- EBITDA of ₹13043 crore in this quarter at a margin of 11% compared to 14% in Q3 FY24.
- Profit of ₹5578 crore in this quarter compared to a ₹7145 crore profit in Q3 FY24.
Financial Summary
| Amount in ₹ Cr | Q3 FY24 | Q3 FY25 | FY23 | FY24 |
| Revenue | 110577 | 113575 | 345967 | 437928 |
| Expenses | 95159 | 100532 | 314151 | 378389 |
| EBITDA | 15418 | 13043 | 31816 | 59538 |
| OPM | 14% | 11% | 9% | 14% |
| Other Income | 1604 | 1764 | 6664 | 5673 |
| Net Profit | 7145 | 5578 | 2690 | 31807 |
| NPM | 6.5% | 4.9% | 0.8% | 7.3% |
| EPS | 21.1 | 14.8 | 7.3 | 94.5 |