Tata Motors Shares Decline Following Q4 Profit Slump

Automaker Tata Motors experienced a significant 3% drop in its shares on Wednesday, following the announcement of a sharp 51% decline in its consolidated net profit for the March quarter. The stock price fell to Rs 686 on both BSE and NSE.

The company reported a net profit of Rs 8,556 crore for the quarter, a stark contrast to the Rs 17,528 crore recorded in the same period last year. This downturn was primarily attributed to weaker volumes and lower operating leverage, as detailed in a regulatory filing.

Financial Performance Overview

For the full financial year 2024–25, Tata Motors’ consolidated net profit was Rs 28,149 crore, down from Rs 31,807 crore in FY24. Despite the profit decline, total revenue saw a modest increase to Rs 4,39,695 crore from Rs 4,34,016 crore.

Future Outlook and Challenges

Tata Motors highlighted global uncertainties as a major concern moving forward. The company pointed out that tariffs and geopolitical actions are creating an unpredictable operating environment, hindering progress.

Tata Motors CFO PB Balaji remarked, "On a consolidated basis, the automotive business is now debt-free, reducing interest costs. This is both pleasing and significant as it reflects healthy business fundamentals delivered by a resilient team."