Tata Motors FY25 Results: Rs 4.39 Lakh Cr Revenue, Net Cash Positive Milestone

Tata Motors Integrated Annual Report Highlights Robust Performance and Strategic Achievements

NEW DELHI (India CSR): In the dynamic landscape of the global automotive industry, where shifting consumer preferences, technological advancements, and macroeconomic headwinds constantly reshape the playing field, Tata Motors Limited has demonstrated remarkable resilience and strategic foresight. The company’s Integrated Annual Report for the Financial Year 2024-25 unveils a period marked by significant financial achievements and pivotal advancements across its diverse portfolio. As Tata Motors accelerates towards a new era defined by sharper focus and bold ambition, the FY25 results provide a clear picture of a company navigating complexity with agility and reinforcing the foundations for future growth and value creation for all stakeholders.

Table: Tata Motors FY25 Financial Performance

Overall Financial Results: Revenue Climbs, Profit Position Strengthens

For the financial year ended March 31, 2025 (FY25), Tata Motors Group reported a consolidated revenue from operations of Rs 4,39,695 crore, a 1.3% increase compared to Rs 4,34,016 crore in FY24. This growth was achieved despite operating in a complex environment.

The Profit Before Tax (PBT) before exceptional items saw a significant increase, reaching Rs 34,330 crore in FY25, up from Rs 29,368 crore in FY24. This improvement reflects better mix, effective cost management, and softening commodity prices. The profit before tax from continuing operations was Rs 33,780 crore in FY25 compared to Rs 28,429 crore in FY24.

The consolidated Profit After Tax (PAT) for the year stood at Rs 28,149 crore in FY25, compared to Rs 31,807 crore in FY24. While this represents a decrease in reported net profit, the source clarifies that the prior year’s figure benefited from a deferred tax credit of Rs 7,093 crore at Jaguar Land Rover, whereas FY25 saw a deferred tax charge of Rs 0.3 billion. Excluding this tax impact context, the underlying operational profitability showed improvement. The net profit attributable to shareholders was Rs 27,830 crore in FY25, compared to Rs 31,399 crore in FY24.

Consolidated underlying EBITDA margin (excluding discontinued operations) was 13.1% in FY25, slightly down from 14.1% in FY24. The consolidated underlying EBIT margin (excluding discontinued operations) remained flat at 7.9% in both FY25 and FY24.

A Major Financial Milestone: Becoming Net Cash Positive

A standout achievement highlighted in the report is the Tata Motors Group becoming net auto cash positive by the end of FY25. The Net Auto cash position stood at Rs 1,018 crore as at March 31, 2025, a significant turnaround from the net auto debt of Rs 16,022 crore at the end of FY24. This demonstrates the group’s successful deleveraging efforts driven by strong free cash flow generation. The automotive free cash flow (auto) was a positive inflow of Rs 22,348 crore in FY25, following an inflow of Rs 26,925 crore in FY24. This robust cash generation has strengthened the company’s financial position and improved its credit ratings.

Segmental Performance: Diverse Contributions to Consolidated Revenue

The automotive operations remain the most significant segment, accounting for 99.1% of total revenue. This segment is further divided into Commercial Vehicles, Passenger Vehicles (including EV), and Jaguar Land Rover.

Jaguar Land Rover (JLR) played a substantial role, contributing 72% of the total automotive revenue in FY25, an increase from 70% in FY24. JLR delivered a robust financial performance with revenue of £29 billion in FY25, which was flat year-on-year in GBP terms. Including a favourable currency translation impact, JLR’s revenue in INR increased by 3.8% to Rs 314,220 crore in FY25 from Rs 302,825 crore in FY24. The segment achieved its strategic goal of an 8.5% adjusted EBIT margin and recorded a positive net cash position. Profit before tax and exceptional items increased by 13.6% to £2.5 billion in FY25 from £2.2 billion in FY24. Wholesale volume (excluding the China joint venture) was 400,898 units in FY25, flat compared to FY24. Retail sales saw a slight dip of 1% globally. JLR’s performance benefited from a favourable sales mix and improved pricing. The segment continues to advance its ‘Reimagine’ strategy, including transforming UK plants for electric vehicle production and aiming for carbon net zero by 2039.

The Tata and other brand vehicles segment (Commercial Vehicles and Passenger Vehicles in India) contributed the remaining 28% of total automotive revenue in FY25, down from 30% in FY24.

Commercial Vehicles (CV) business recorded a revenue of Rs 75,055 crore in FY25, a 4.7% decrease from Rs 78,791 crore in FY24. Sales volume was 384,704 units, down 5.1% from 405,471 units in FY24. Despite the decline in volumes and overall revenues, the business delivered an improved financial performance. EBITDA margin increased by 100 basis points year-on-year to 11.8%, due to optimised mix and realisations. The EBIT reached an all-time high of Rs 6,794 crore, a 4.9% growth over FY24. Profit before tax (before exceptional items) was Rs 6,649 crore, up from Rs 6,102 crore in FY24. The Indian CV industry experienced mixed trends, with a marginal decline overall, primarily in the HCV and SCV segments. However, Tata Motors CV outperformed the industry in gaining share and improving realisations in Trucks and Buses. The business introduced new products like the Winger 9S, Tata Intra V70 Gold, Prima 4830.T, and Magic Bi-Fuel. Digital platforms like Fleet Edge and Fleet Verse continued to grow, enhancing operational efficiency and customer engagement. The segment anticipates sustained growth in FY26 driven by a favourable macroeconomic environment, rising infrastructure investments, and strong replacement demand.

The Passenger Vehicles (PV) business (including EVs) in India reported a revenue of Rs 48,445 crore in FY25, a 7.5% drop from Rs 52,353 crore in FY24. Wholesales were 556,367 units, a 3% decrease from 573,541 units in FY24. The Indian PV industry entered a phase of consolidation in FY25, with modest 2% growth after years of high growth, influenced by macroeconomic factors. Tata Motors PV outpaced the industry in high-growth segments like SUVs (+11%) and CNG vehicles (+53%). The Tata Punch became the highest-selling model in India in CY24. The business reported an EBIT of 0.9% in FY25. However, it recorded an EBITDA margin improvement of 40 basis points over FY24, reaching 6.9%, supported by cost-reduction initiatives. New products like the Tata Curvv, Currv.ev, and Nexon iCNG were launched and well-received.

Within the PV segment, Electric Vehicles (EVs) continued to gain momentum, especially in the second half of FY25, supported by new product launches and a growing charging network. Tata Motors maintained its market leadership with over 55% share in the Indian EV market. The company sold 64,269 EV units in FY25. The EV segment achieved positive EBITDA in FY25 due to higher localisation and cost reduction efforts. Tata Motors now offers the widest EV portfolio in India, with 6 products, and its EVs have cumulatively driven over 5 billion kilometers.

The “Others” business segment, primarily including Tata Technologies Limited (TTL), saw revenues increase by 2.5% to Rs 6,019 crore in FY25 compared to Rs 5,875 crore in FY24 (before inter-segment eliminations). TTL, a leading global engineering services provider, reported revenue of Rs 5,168 crore, an operating EBITDA of Rs 934 crore (18.1% margin), and PAT of Rs 677 crore (13.1% margin) in FY25. The company’s vehicle financing operations saw revenue drop significantly due to the merger of Tata Motors Finance Ltd with Tata Capital Ltd, effective April 1, 2024. This transaction resulted in a gain on the sale of the discontinued operation amounting to Rs 4,975 crore in FY25.

Investing in the Future and Returning Value

Tata Motors continues to invest significantly in product development and future technologies. R&D spends amounted to Rs 33,569 crore in FY25. The company saw a substantial increase in the capitalisation of product development costs, with projects in progress valued at Rs 24,761 crore as at March 31, 2025, up from Rs 9,055 crore in FY24. The company is pioneering India’s EV transition and shaping the future of mobility, including advancements in AI/Gen AI for vehicle conception, building, and operation. Investments are also directed towards sustainable practices, including achieving net-zero emissions targets and developing circular economy initiatives.

The Board of Directors has recommended a final dividend of Rs 6/- per ordinary share for FY25, subject to shareholder approval. This translates to a cash outflow of Rs 2,209 crore and represents a payout of 40.5% of the standalone net profit.

Looking ahead to FY26, Tata Motors anticipates sustained growth in the domestic market, driven by favorable macroeconomic conditions and infrastructure investments, while remaining mindful of global challenges. The strategic demerger of Tata Motors into two listed entities – Commercial Vehicles and Passenger Vehicles (including EV and JLR) – is progressing, expected to be effective during the second half of 2025. This move aims to bring greater strategic clarity, agility, and focused value creation for each business.

Overall, the FY25 financial results highlight Tata Motors’ ability to achieve strategic goals, improve profitability margins in key areas despite volume challenges, and strengthen its financial position, marking a significant step forward in its transformation journey.

FAQs on Tata Motors FY25 Results

1. What was Tata Motors’ total revenue in FY25?

Tata Motors reported consolidated revenue of ₹4,39,695 crore, marking a 1.3% increase over FY24.

2. Did Tata Motors become net cash positive in FY25?

Yes, Tata Motors became net auto cash positive with ₹1,018 crore in FY25, a major turnaround from ₹16,022 crore net debt in FY24.

3. How did Jaguar Land Rover perform in FY25?

JLR contributed 72% of total auto revenue, achieved 8.5% EBIT margin, and generated strong profits with a positive net cash position.

4. How was the performance of the EV segment?

Tata Motors sold over 64,000 EVs, maintained a 55%+ market share, and achieved positive EBITDA for the segment in FY25.

5. What is the dividend declared for FY25?

The Board recommended a final dividend of ₹6 per ordinary share, pending shareholder approval.

(India CSR)