Tata Motors reported a 52% drop in Q4FY25 profit despite record annual revenue. It declared a ₹6 dividend per share. Shares dipped post-earnings, with concerns over lower profits and challenging global conditions affecting investor sentiment.
Tata Motors witnessed a nearly 3% drop in its share price during Wednesday’s morning session following the release of its Q4FY25 results after Tuesday's market close. Despite announcing a dividend and reporting earnings above expectations, the stock came under pressure. At 10:51 am, it was trading at ₹703.95, down 0.47% from the previous day’s close.
In the January–March 2025 quarter, the company reported a consolidated net profit of ₹8,556 crore, marking a sharp 51.58% decline from ₹17,973 crore in the same period last year. Revenue for the quarter stood at ₹1,19,503 crore, reflecting a marginal 0.4% growth year-on-year.
The automaker’s operating performance also showed strain. EBITDA for Q4 dropped 4.1% YoY to ₹16,697 crore, and the EBITDA margin narrowed by 60 basis points to 14%.
For the full financial year FY25, Tata Motors recorded its highest-ever revenue at ₹4,39,695 crore, a modest 1.3% rise over the previous year. However, annual net profit declined by 11.5% to ₹28,149 crore.
Tata Motors announced that the group achieved a net auto cash surplus in FY25, posting a positive balance of ₹1,000 crore. The company attributed this improvement to factors such as reduced depreciation and amortisation at Jaguar Land Rover (JLR), stronger profitability in the commercial vehicle segment, and lower interest expenses. However, these gains were partially offset by weaker sales volumes and limited operating leverage.
Tata Motors also cautioned that global trade policies and geopolitical developments are creating a challenging and uncertain business environment. Despite this, the company remains optimistic, expecting the global premium luxury market and the Indian domestic sector to remain relatively resilient.
The Board of Directors has proposed a final ordinary dividend of ₹6 per share, which represents 300% of the face value. This recommendation is subject to approval at the upcoming shareholders' meeting. If approved, the total cash outflow on account of the dividend payout will amount to ₹2,209 crore.
On the year-to-date basis, the stock has declined by 4.7% while in the last month it is up by 15.43%. In the last 12 months, the stock is down by 27.04% and in the longer period of 5 years, it has surged 764%.
Disclaimer: The article is for informational purposes only and not investment advice.
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