Tata Motors (NSE:TAMO) Limited reported a consolidated net profit of INR 8,556 crore for the fourth quarter of FY25, marking a 51.2% decline from INR 17,528 crore in the same quarter last year. Despite the drop in bottom-line figures, the company posted a slight rise in total income at INR 1,21,012 crore, compared to INR 1,20,431 crore a year ago.
EBITDA for the quarter stood at INR 16,700 crore, down 4.1% year-on-year. However, EBIT rose to INR 11,500 crore—INR 1,000 crore higher than last year—indicating operational resilience amid macroeconomic uncertainty.
The Board of Directors has recommended a final dividend of INR 6 per share, subject to shareholder approval.
In a statement, Tata Motors said that despite global headwinds and geopolitical disruptions, the premium luxury and Indian auto segments are likely to withstand volatility better than other sectors. “Tariffs and geopolitical actions are making the operating environment challenging, but the Indian domestic market and premium luxury segments are expected to weather this relatively better,” the company said.
CFO P.B. Balaji added that FY25 marked a landmark year for Tata Motors, with record revenues of INR 4,39,700 crore and a net profit of INR 28,100 crore. Notably, the company’s automotive business turned net debt-free and ended the fiscal with INR 1,000 crore in net cash. “We will stay agile, reduce our cash break-even, and continue investing in future growth. With the demerger also approved, we are well-positioned to unlock greater value across our verticals,” Balaji said.
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Despite short-term profit pressure, Tata Motors appears undervalued from a long-term investment perspective. According to InvestingPro’s fair value analysis, the intrinsic value of Tata Motors stands at INR 1,020.4 per share—suggesting a potential upside of 46.7% from its current market price of INR 695.
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