Tata Motors Passenger Vehicles (500570) Q3 24/25 earnings summary

Executive summary

• Consolidated Q3 FY25 revenue rose 2.7% year-over-year to ₹113,575 Cr, with EBITDA margin at 13.7% and EBIT margin improving to 8.9%; net profit was ₹5,578 Cr and free cash flow at ₹4,700 Cr.

• Net automotive debt reduced to ₹19,200 Cr, with the domestic business returning to a net cash position and JLR contributing significantly to PBT improvement.

• JLR achieved record Q3 revenue of £7.5B and the highest Q3 EBIT margin in a decade at 9.0%, with PBT (before exceptional items) of £523M.

• The demerger process is progressing, with regulatory approvals expected soon and an effective date likely between October and December 2025.

• PLI incentives contributed to margin improvement, with cash inflow and approvals supporting both CV and PV segments.

Financial highlights

• Q3 FY25 consolidated revenue: ₹113,575 Cr (+2.7% YoY); EBITDA margin: 13.7% (+60 bps YoY); EBIT margin: 8.9%.

• JLR Q3 FY25 revenue: £7.5B (+1.5% YoY); EBIT margin: 9.0% (+20 bps YoY); free cash flow: £157M.

• Tata Commercial Vehicles Q3 revenue: ₹18,431 Cr (-8.4% YoY); EBITDA margin: 12.4% (+130 bps YoY); PBT (before exceptional items): ₹1,726 Cr.

• Tata Passenger Vehicles Q3 revenue: ₹12,354 Cr (-4.3% YoY); EBITDA margin: 7.8% (+120 bps YoY); PBT (before exceptional items): ₹292 Cr.

• Free cash flow for the group was strong, with ₹2,500 Cr delivered in Q3 and capex fully funded by cash profits.

Outlook and guidance

• JLR maintains FY25 guidance: EBIT margin ≥8.5%, revenue ~£29B, net cash positive, ROCE ~20%; Q4 EBIT targeted above 10%.

• Domestic demand is expected to improve gradually, supported by infrastructure, new product launches, and stable interest rates; JLR wholesales are likely to rise in Q4.

• Management remains cautious on China due to market volatility and is focused on maintaining healthy dealer inventory levels.

• PV industry growth is expected to be flat in FY25, with potential for 6-7% growth in FY26 depending on macroeconomic conditions.

• Commercial vehicle demand anticipated to rise in Q4 FY25, with focus on infrastructure and end-use segment growth.