Tata Motors Q3 FY25 Revenue Rises To ₹113.6K Cr, EBITDA At ₹15.5K Cr Despite Market Challenges

Tata Motors' EV market share stands at 61 per cent in India, alternative powertrains gain momentum

Automobile manufacturer, Tata Motors has reported a mixed financial performance for the third quarter of the fiscal year 2025, showing resilience in profitability amid revenue fluctuations across its business segments. The company posted a consolidated revenue of Rs 1,13,575 crore, reflecting a 2.7 per cent year-on-year growth, with EBITDA at Rs 15,500 crore and an EBIT margin of 8.9 per cent—a 60-bps improvement over the previous year.

However, profit before tax (PBT) before exceptional items (bei) declined by Rs 75 crore to Rs 7,700 crore. The company’s automotive free cash flow stood at Rs 4,700 crore, reflecting an improvement in operational efficiency. Notably, Tata Motors received a Rs 351 crore benefit from the Automotive Production Linked Incentive (PLI) scheme, aiding its margins across segments.

Jaguar Land Rover (JLR): Record Revenue & Best EBIT Margin in a Decade

JLR, the crown jewel of Tata Motors, reported a record quarterly revenue of £7.5 billion, up 1.5 per cent year-on-year. The segment also achieved a milestone with its highest EBIT margin in a decade at 9.0 per cent, marking a 20 bps improvement over the previous year. However, the EBITDA margin contracted by 200 bps to 14.2 per cent due to increased variable marketing expenses and higher warranty costs.

Despite supply chain challenges in the previous quarter, wholesale volumes improved sequentially, boosting JLR’s financial performance. Looking forward, JLR remains focused on electrification, with its Range Rover Electric development progressing and a waiting list of 57,000 customers. The brand’s electrification push is evident, as Range Rover plug-in hybrid sales soared by 163 per cent YoY.

Tata Commercial Vehicles (CV): Margins Improve Despite Revenue Decline

Tata Motors’ Commercial Vehicles (CV) division reported a revenue decline of 8.4 per cent YoY to Rs 18,431 crore, impacted by lower volumes and mix. However, the EBITDA margin improved by 130 bps to 12.4 per cent, supported by cost reductions and the PLI incentive. The segment’s EBIT margin also rose by 100 bps to 9.6 per cent.

The quarter saw a 9 per cent YoY decline in heavy commercial vehicle (HCV) sales, while intermediate and light commercial vehicles (ILMCV) and passenger carrier segments saw 3 per cent and 30 per cent YoY growth, respectively. Tata Motors introduced over 50 product variants during the quarter and showcased 14 advanced mobility solutions at the Bharat Mobility Expo 2025. Among them were India’s first LNG prime mover (Prima G.55S) and a hydrogen ICE truck (Prima H.28).

Looking ahead, Tata Motors expects a gradual demand improvement driven by infrastructure spending and end-use segment growth.

Tata Passenger Vehicles (PV): Moderate Growth Amidst EV Momentum

Tata Motors' Passenger Vehicles (PV) business posted a revenue decline of 4.3 per cent YoY to Rs 12,354 crore. Despite the dip in revenue, EBITDA margin rose by 120 bps to 7.8 per cent, thanks to cost controls and PLI benefits. However, EBIT margin fell by 40 bps to 1.7 per cent.

Tata Motors continued to dominate the EV market, holding a 61 per cent market share in the segment, with EV penetration reaching 11 per cent. The company’s flagship micro-SUV, Tata Punch, emerged as India’s best-selling car in CY24, with over 200,000 units sold.

The PV industry is projected to grow at a moderate pace in FY25, with SUVs and alternative powertrains leading the demand shift. Tata Motors aims to leverage its multi-powertrain strategy to drive future growth.

Financial Highlights and Outlook

  • Finance costs reduced by Rs 760 crore to Rs 1,725 crore, reflecting effective debt management.
  • Net automotive debt stood at Rs 19,200 crore, with free cash flow of Rs 4,700 crore, driven by improved volumes.
  • Joint ventures and associates posted a net loss of Rs 30 crore, compared to a profit of Rs 193 crore in Q3 FY24.
  • Total liquidity at JLR was £5.1 billion, including a £1.6 billion undrawn credit facility.

Tata Motors remains optimistic about Q4 FY25, expecting improvements in domestic demand, infrastructure spending, and a strong pipeline of product launches. However, China’s macroeconomic conditions and global economic uncertainties remain key watchpoints.

PB Balaji, Group CFO, Tata Motors, remarked, “In Q3, all our businesses showed sequential improvements. We remain confident in delivering another strong performance this year, despite external challenges.”

With record revenue at JLR, improving margins in CV, and sustained momentum in EVs, Tata Motors continues to steer towards a profitable and sustainable future.

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Utkarsh Agarwal

BW Reporters The author is the Editorial Lead of BW Auto World

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