Tata Motors Shares Slide 3% After 51% Decline in Q4 Net Profit

Lower Volumes and Operating Leverage Weigh on Automaker’s Earnings​

New Delhi, May 14 – Shares of Tata Motors tumbled 3% on Wednesday following the company's announcement of a steep 51% year-on-year drop in consolidated net profit for the March quarter.
The stock fell to Rs 686 apiece on both the BSE and NSE, reacting to the company’s financial results disclosed on Tuesday.
Tata Motors reported a consolidated net profit of Rs 8,556 crore for the fourth quarter of FY25, significantly down from Rs 17,528 crore in the corresponding quarter of the previous fiscal year. The decline was primarily attributed to lower sales volumes and reduced operating leverage.
Despite the profit slump, the company’s total revenue from operations for Q4 FY25 stood at Rs 1,19,503 crore, marginally up from Rs 1,19,033 crore in the same period last year.

Full-Year Performance FY25 vs FY24​

For the full fiscal year 2024-25, Tata Motors reported a consolidated net profit of Rs 28,149 crore, lower than Rs 31,807 crore in FY24. However, total revenue rose slightly to Rs 4,39,695 crore, compared to Rs 4,34,016 crore in the previous year.
The company acknowledged the challenges posed by global uncertainties, stating, “Tariffs and related geopolitical actions are making the operating environment uncertain and challenging.”
Investors are likely to keep a close watch on how Tata Motors navigates these headwinds in the upcoming quarters.