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Tata Motors Faces Profit Decline and Analyst Downgrades Despite Net-Debt Free Milestone

The auto giant saw a 51% drop in Q4 profit, stock down 3%, as trade challenges and muted domestic demand weigh on outlook.

Tata Motors shares: Down 41% from 52-week high, can the auto stock recover after Q4 earnings?
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Overview

  • Tata Motors reported a 51% year-on-year decline in Q4 FY25 net profit to Rs 8,470 crore, with flat revenue at Rs 1.19 lakh crore.
  • The company achieved a significant milestone by becoming net-debt free in its automotive business on a consolidated basis.
  • Jaguar Land Rover posted $875 million in profit before tax and a 10.7% EBIT margin, despite facing tariff pressures in the US and market share losses in China.
  • Shares of Tata Motors fell 3% to Rs 686 on the BSE, with analysts revising price targets downward, citing weak near-term prospects and muted domestic commercial vehicle growth.
  • The EV vertical showed promise, turning EBITDA-positive at 6.5%, but passenger vehicle volumes declined 5% and EBIT margins contracted to 1.6%.