Tata Motors Ltd. (TML) reported a consolidated revenue of ₹1.04 lakh crore for the quarter ended June 30, 2025, down 2.5% year-on-year, as volume declines across businesses and steep US trade tariffs on Jaguar Land Rover (JLR) models dented profitability. Consolidated EBIT fell to ₹4,500 crore with margins slipping 370 basis points to 4.3%.
The group’s profit before tax (before exceptional items) came in at ₹5,617 crore, aided by lower finance costs, despite a sharp fall in JLR earnings. Automotive free cash flow was negative at ₹12,300 crore due to seasonal working capital outflows and tariff impacts.
JLR Hit by Tariffs, Wind-down of Legacy Jaguar
JLR’s revenue dropped 9.2% to £6.6 billion, with EBIT margin sliding 490 bps to 4.0% as 27.5% US tariffs on UK- and EU-made vehicles and the planned wind-down of legacy Jaguar models weighed on performance. PBT fell nearly 50% to £351 million. A new UK-US trade deal, effective June 30, 2025, and an EU-US tariff pact announced in late July are expected to ease the burden in coming quarters.
Commercial Vehicles Show Resilience
The commercial vehicle division posted revenues of ₹17,009 crore, down 4.7%, but improved EBITDA margins to 12.2% on better realizations and cost savings. PBT rose to ₹1,657 crore despite a 9% drop in domestic sales. Exports surged 68% year-on-year.
Passenger Vehicles Impacted by Demand Softness
Passenger vehicle revenues fell 8.2% to ₹10,877 crore, with EBIT turning negative at -2.8%. Wholesales dropped 10.1% amid industry slowdown and model transitions. EV penetration remained steady at 13%, with July recording Tata Motors’ highest-ever monthly EV sales.
Strategic Moves and Outlook
Tata Motors confirmed that the NCLT has concluded final hearings on the planned demerger, targeted for an October 1 effective date. On July 30, it announced a €3.8 billion voluntary tender offer to acquire 100% of Iveco Group N.V. (excluding defence), expected to close in the first half of 2026.
PB Balaji, Group CFO, said the company aims to accelerate performance in the second half, supported by festive demand and easing tariff uncertainty.
