Tata Motors Q3 Results: Profit Drops By More Than A Fifth, Misses Estimates

Tata Motors Ltd.’s profits fell by more than a fifth and missed estimates in the fiscal third quarter as discounts and inventory weighed on local sales. Elsewhere, Jaguar Land Rover faltered.

Consolidated net profit of India’s largest automaker by revenue fell 22% year-on-year to Rs 5,451 crore in the three months ended Dec. 31, 2024, even as revenue rose 2.7% to Rs 1,13,575 crore, according to an exchange filing on Wednesday. The analysts tracked by Bloomberg had pegged the bottom line at Rs 6,435 crore and the top line at Rs 1,16,646 crore.

• Revenue up 2.7% at Rs 1,13,575 crore (Estimate: Rs 1,16,646 crore)

• EBITDA down 15% at Rs 13,081 crore (Estimate: Rs 15,514 crore)

• EBITDA margin down 240 basis points at 11.5% (Estimate: 13.30%)

• Net profit down 22% to Rs 5,451 crore (Estimate: Rs 6,435 crore)

One basis point is one hundredth of a percentage point.

Segment-wise, Jaguar Land Rover delivered record third-quarter revenue of £7.5 billion but its operational profitability margin dipped 200 basis points to 14.2%. Profit before tax stood at £523 million as against a £103 million loss in the year-ago period.

Revenue of Tata Motors’ PV business fell 4.3% year-on-year to Rs 12,354 crore even as margins improved 120 basis points to 7.8%. The segment clocked a profit before tax of Rs 292 crore as against a loss of Rs 116 crore.

Revenue of Tata Motors’ CV business fell 8.4% year-on-year to Rs 18,431 crore even as margins improved 130 basis points to 12.4%. Profit before tax expanded manifold to Rs 1,746 crore as against Rs 70 crore in the year-ago period.

On Wednesday, Tata Motors shares rose 3.29% to Rs 752.45 apiece on the BSE even as the benchmark Sensex ended the day 0.83% higher at 76,532.96 points. The quarterly results were declared after market hours.