Tata Motors (TMCV) Q3 24/25 earnings summary

Executive summary

• Achieved consolidated Q3 FY25 revenue of ₹113.6K Cr, up 2.7% YoY, with EBITDA margin at 13.7% and PBT (bei) at ₹7.7K Cr; YTD PBT (bei) reached ₹22.3K Cr, indicating strong performance despite challenging conditions.

• JLR posted record Q3 revenue of £7.5b and highest Q3 EBIT margin in a decade at 9.0%, with PBT (bei) of £523m; YTD ROCE at 19.6%.

• Revenue from operations for the quarter ended December 31, 2024, was ₹17,040 crore, up from ₹15,518 crore in the previous quarter and down from ₹18,669 crore year-over-year.

• Net profit for the quarter was ₹1,404 crore, a significant increase from ₹477 crore in the same quarter last year.

• Total comprehensive income for the quarter reached ₹1,244 crore.

Financial highlights

• Consolidated Q3 FY25 revenue grew 2.7% YoY to ₹113.6K Cr; EBIT margin improved by 60 bps YoY to 8.9%.

• Net auto debt reduced to ₹19.2K Cr, reflecting ongoing deleveraging and lower finance costs.

• Free cash flow (auto) for Q3 FY25 was ₹4.7K Cr, reversing adverse working capital trends.

• JLR Q3 FY25 revenue rose 2% YoY to £7.5b; EBIT margin at 9.0% (up 20 bps YoY); free cash flow at £157m.

• Profit before tax for the quarter was ₹1,529 crore, up from ₹1,153 crore in the previous quarter.

Outlook and guidance

• Full-year guidance maintained for EBIT margin (≥8.5%) and net cash positive for JLR; FY25 revenue outlook c.£29b, investment c.£3.8b, and free cash flow c.£1.3b.

• Domestic demand expected to improve gradually, with JLR wholesales to rise in Q4; focus on innovation, cost reduction, and new product launches.

• Awaiting regulatory approvals for the demerger of the Commercial Vehicle business and merger of the Passenger Vehicles business, which will result in two separate listed companies.