Tata Motors Performance in 2025: Financials, Sales, Top Models, and Market Trends

Financial Performance and Profitability

• Revenue (Q2 FY2025): ₹101,450 crore (~$12.5 billion USD), down 3.5% year-over-year

• Net Profit (Q2 FY2025): ₹3,343 crore (~$412 million USD), declined by 11% compared to the same quarter last year

• EBITDA: ₹11,600 crore (~$1.45 billion USD), with an EBITDA margin of 11.4%, down 230 basis points year-over-year

• EBIT Margin: 5.6%, decreased by 190 basis points compared to Q2 FY2024

• Profit Before Tax (PBT) (bei): ₹5,768 crore (~$712 million USD), down ₹391 crore from previous year quarter

Vehicle Sales and Production

• Jaguar Land Rover (JLR) revenue declined by 5.6% to £6.5 billion, impacted by temporary supply constraints with an EBIT margin of 5.1%

• Commercial Vehicle (CV) segment revenue dropped 13.9%, but EBITDA margin improved to 10.8% due to favorable pricing and material cost savings despite lower volumes

• Passenger Vehicle (PV) revenue decreased 3.9%, while maintaining EBITDA margins at 6.2%, supported by better product mix and cost reduction measures

• PV sales volume was approximately 130,500 units, down 6.1% year-over-year, influenced by slower market demand and seasonal factors

Regional and Global Sales Performance

• Supply chain disruptions affected JLR performance, expected to improve as constraints ease

• Domestic demand showed cautious trends with infrastructure investments and festive season expected to boost sales in H2 FY2025

• Commercial vehicles segment faced volume pressure due to slow fleet utilization and lower mining activity

• Tata Motors achieved record monthly registrations (~68,500 units) in October 2025, improving channel inventory levels

Profitability and Cost Factors

• Cost control and mix optimization initiatives helped mitigate margin erosion amid volume declines

• Finance costs reduced by ₹618 crore to ₹2,034 crore in Q2 FY2025 due to lower gross debt levels

• Joint ventures and associates contributed positively, with net profit at ₹82 crore compared to ₹49 crore in prior year

Debt and Liquidity

• Automotive free cash flow for the quarter was negative ₹2,900 crore, impacted by lower production volumes

• Net automotive debt stood at ₹22,000 crore as of Q2 FY2025

• Management aims to achieve net debt-free status by the end of the fiscal year

Best Selling Models: Overview and Market Impact

Weakest Performers and Segment Challenges

• Commercial Vehicle volumes negatively impacted by industry slowdown and weather disruptions

• Passenger Vehicle volumes declined due to soft consumer demand and seasonal factors

• Temporary supply chain constraints caused production and wholesale volume reductions

Key Financial and Operational Metrics

Industry Outlook and Strategic Focus

• Management expects improvement in H2 FY2025 driven by easing supply constraints and festive season demand

• Continued focus on growth, competitiveness, and free cash flow generation through operational efficiencies

• Investment in product portfolio diversification, especially electric and multi-powertrain vehicles, to capture new demand segments

• Infrastructure spending and market recovery to support commercial vehicle sales in the near term

Summary

Tata Motors' Q2 FY2025 results reflect resilience amid a challenging environment characterized by supply constraints and soft demand. The company sustained profitability in key segments while managing costs and improving product mix. Supply chain normalization and a strong festive season are expected to boost performance in the second half of the fiscal year. Tata Motors remains focused on debt reduction, operational efficiency, and growth in emerging powertrain technologies to strengthen its market position.

Sources

• Tata Motors Consolidated Q2 FY25 Financial Results and Press Releases5paisa+1

• Market analysis and industry reports on Tata Motors Q2 2025 performancetatamotors+1

• Official Tata Motors investor relations disclosures August 2025tatamotors