Tata's Automaker Announced Q4 Results: 52 Per Cent Profit Drop Despite Record Rs 4.39 Lakh Crore Annual Revenue; Rs 6 Per Share Dividend Declared

On the stock performance front, Tata Motors has delivered multibagger returns over the long term with a 764 per cent gain in the past five years

Tata Motors reported its Q4FY25 earnings, revealing a significant decline in quarterly profit even as the company posted its highest-ever yearly revenue. The automaker declared a final dividend of Rs 6 per share, or 300 per cent of the face value, subject to shareholder approval. Despite this announcement, the stock witnessed selling pressure and dropped nearly 3 per cent in Wednesday’s morning trade.

For the January–March 2025 quarter, the company posted a consolidated net profit of Rs 8,556 crore, a sharp fall of 51.58 per cent from Rs 17,973 crore reported in the corresponding quarter of the previous year. Quarterly revenue stood at Rs 1,19,503 crore, growing marginally by 0.4 per cent on a year-on-year basis. However, operating performance declined, with EBITDA down 4.1 per cent to Rs 16,697 crore and the EBITDA margin narrowing by 60 basis points to 14 per cent.

In the full financial year FY25, Tata Motors reported a modest 1.3 per cent rise in revenue to Rs 4,39,695 crore—its highest ever. However, the annual net profit slipped 11.5 per cent to Rs 28,149 crore. The company achieved a net automotive cash surplus of Rs 1,000 crore, citing improved profitability in the commercial vehicle segment, reduced depreciation at Jaguar Land Rover (JLR), and lower interest expenses. Still, weak sales volumes and limited operating leverage weighed on the bottom line.

The Board has recommended a dividend payout of Rs 6 per share, resulting in a total estimated cash outflow of Rs 2,209 crore. The recommendation awaits approval at the forthcoming shareholders’ meeting.

Tata Motors also acknowledged global headwinds, including trade policy shifts and geopolitical tensions, as factors contributing to the uncertain business environment. Nonetheless, it remains optimistic about demand resilience in both the global luxury segment and the Indian domestic market.

On the stock performance front, Tata Motors has delivered multibagger returns over the long term with a 764 per cent gain in the past five years. However, the stock is down 27.04 per cent over the last 12 months and has declined 4.7 per cent on a year-to-date basis. Interestingly, the stock gained 15.43 per cent in the past month, reflecting some near-term recovery.

Disclaimer: The article is for informational purposes only and not investment advice.