In a testament to resilience amid global and domestic pressures, Tata Motors reported its Q2 FY25 financial results, highlighting a mixed performance influenced by supply chain challenges and market fluctuations. The automotive giant saw consolidated revenue dip by 3.5% to ₹101.5K crore, accompanied by an EBITDA of ₹11.6K crore at an 11.4% margin. Profit before tax (excluding exceptional items) dropped to ₹5.8K crore, down by ₹391 crore, while net profit landed at ₹3.5K crore.
JLR: Struggling Under Supply Constraints but Poised for Rebound
Jaguar Land Rover (JLR), the luxury arm of Tata Motors, reported a 5.6% decrease in revenue, closing at £6.5 billion. Temporary aluminum supply constraints and rigorous quality control checks held back performance, leading to a 5.1% EBIT margin, down 220 basis points. Despite this, JLR maintained a positive cash balance of £3.4 billion and net debt at £1.2 billion, underpinned by strategic cost management. CEO Adrian Mardell expressed confidence in a robust recovery in H2 FY25, banking on easing supply issues and an unyielding commitment to the Reimagine strategy.
Tata Commercial Vehicles: Strong Margins Amid Declining Revenue
Revenue for Tata’s commercial vehicle segment saw a 13.9% fall to ₹17.3K crore due to weakened infrastructure activity and adverse weather impacts. However, EBITDA improved by 40 basis points to 10.8%, driven by material cost efficiencies and favorable pricing. Executive Director Girish Wagh projected stronger demand in H2 as infrastructure spending resumes and festive season sales pick up.
Passenger Vehicles: Resilient Despite Demand Fluctuations
The passenger vehicle segment recorded a 3.9% decline in revenue at ₹11.7K crore. Despite softer consumer demand and subsidy expirations affecting EV sales, Tata PV managed steady EBITDA margins at 6.2%. The launch of models like Tata Curvv and enhanced Nexon variants positioned the company to leverage a resurgence in demand during Q3, according to Managing Director Shailesh Chandra.
Strategic Initiatives and Future Outlook
Tata Motors maintained a cautious outlook, underscoring potential short-term challenges in domestic demand. However, strategic investments, cost management, and the forthcoming festive season were expected to support recovery. JLR’s EV push at its Halewood facility, with over £250 million invested, underscored a firm commitment to future growth. The company reaffirmed its goal of achieving a net debt-free status by year-end.
Group CFO PB Balaji concluded optimistically, highlighting that the company’s robust fundamentals and supply chain improvements would lead to stronger results in H2 FY25.
| Consolidated (₹Cr Ind AS) | Jaguar Land Rover (£m, IFRS) | Tata Commercial Vehicles (₹Cr, Ind AS) | Tata Passenger Vehicles (₹Cr, Ind AS) | ||||||
|---|---|---|---|---|---|---|---|---|---|
| FY25 | Vs. PY | FY25 | Vs. PY | FY25 | Vs. PY | FY25 | Vs. PY | ||
| Q2 FY25 | Revenue | 101,450 | (3.5)% | 6,475 | (5.6)% | 17,288 | (13.9)% | 11,700 | (3.9)% |
| EBITDA (%) | 11.4 | (230) bps | 11.7 | (320) bps | 10.8 | 40 bps | 6.2 | (30) bps | |
| EBIT (%) | 5.6 | (190) bps | 5.1 | (220) bps | 7.8 | (10) bps | 0.1 | (170) bps | |
| PBT (bei) | 5,768 | ₹(391) Cr | 398 | £ (44)mn | 1,314 | ₹(212) Cr | 229 | ₹(67) Cr | |
| H1 FY25 | Revenue | 209,498 | 1.0% | 13,748 | – | 35,138 | (5.2)% | 23,548 | (5.9)% |
| EBITDA (%) | 13.0 | (100) bps | 13.9 | (170) bps | 11.2 | 120 bps | 6.0 | 10 bps | |
| EBIT (%) | 7.0 | (80) bps | 7.1 | (90) bps | 8.4 | 120 bps | 0.2 | (120) bps | |
| PBT (bei) | 14,595 | ₹2,895 Cr | 1,091 | £ 214 mn | 2,849 | ₹387 Cr | 402 | ₹(81) Cr | |
