Tata Motors Q4 Results: Profit Drops 51%; Check Here The Dividend Declared

Operationally, Tata Motors reported an EBITDA of Rs 16,700 crore for the quarter, representing a 4.1 per cent decline. However, EBIT improved, reaching Rs 11,500 crore, up Rs 1,000 crore year-on-year

In a regulatory filing, the company acknowledged ongoing macroeconomic and geopolitical challenges

Source : Somnath Chatterjee

Tata Motors reported a drop in its consolidated net profit for the fourth quarter of FY25, with earnings falling 51.2 per cent year-on-year to Rs 8,556 crore. This is a sharp decline from the Rs 17,528 crore profit posted during the same period last year. Despite the dip in profit, the company recorded a marginal increase in total income for the quarter, rising to Rs 1,21,012 crore compared to Rs 1,20,431 crore in Q4 FY24.

Operationally, Tata Motors reported an EBITDA of Rs 16,700 crore for the quarter, representing a 4.1 per cent decline. However, EBIT improved, reaching Rs 11,500 crore, up Rs 1,000 crore year-on-year.

The company’s board has proposed a final dividend of Rs 6 per share, subject to shareholder approval.

Tata Motors remains optimistic about its future outlook, especially in the premium and domestic automotive segments. In a regulatory filing, the company acknowledged ongoing macroeconomic and geopolitical challenges, noting that “tariffs and related geopolitical actions are making the operating environment uncertain and challenging.” However, it expressed confidence that the luxury vehicle market and India’s domestic auto sector are better positioned to withstand global headwinds.

Leadership Take On Results

PB Balaji, Group CFO, highlighted the company’s financial resilience despite external pressures. “Despite external headwinds, Tata Motors sustained its strong performance in FY25, delivering its highest ever revenues and PBT(bei). On a consolidated basis, the automotive business is now debt-free, reducing interest costs. In this environment of heightened uncertainty, we will remain agile, proactively drive our growth agenda, reduce our cash breakeven further, whilst continuing to invest in our future. With the shareholders also approving the demerger, we are on track to realise the full potential of each of the businesses,” the CFO added. 

For the full financial year, Tata Motors achieved record consolidated revenue of Rs 4,39,700 crore and posted its highest-ever EBITDA at Rs 57,600 crore. Profit before tax (before exceptional items) rose to Rs 34,300 crore, up Rs 5,000 crore from FY24. The company closed the year with a net profit of Rs 28,100 crore and became net auto cash positive, ending with a surplus of Rs 1,000 crore. The gains were supported by improved profitability in commercial vehicles, cost savings, and lower depreciation and amortisation at Jaguar Land Rover (JLR), partially offset by reduced volumes and operating leverage.