May 14, 03:14 AM

Tata Motors Q4 Profit at ₹8,470 Crore, JLR Faces Tariff Risks; Tata Steel Profit at ₹1,200.88 Crore, Target ₹177

Tata Motors reported a 51% year-on-year decline in net profit for the fourth quarter of FY25, with profits falling to ₹8,470 crore from ₹17,407 crore a year earlier. Revenue for the quarter was ₹119,502 crore, nearly flat compared to the previous year. The company's EBITDA for the quarter stood at ₹16,700 crore, with an EBITDA margin of 14%. For the full fiscal year, Tata Motors achieved record revenues of ₹4,39,695 crore and a net profit of ₹27,830 crore, while turning net auto cash positive with a net cash balance of ₹1,000 crore. Jaguar Land Rover (JLR), Tata Motors' premium unit, posted quarterly revenue of £7.7 billion, down 1.7% year-on-year, and an EBITDA margin of 15.3%. JLR's quarterly profit before tax was £875 million, and FY25 revenue was £29.0 billion. Defender model wholesale sales reached a record 115,404 units in FY25. JLR achieved its FY25 EBIT margin target of 8.5% but has not confirmed its FY26 EBIT margin outlook due to uncertainties from US tariffs and macroeconomic conditions, particularly in China. Tata Motors declared a final dividend of ₹6 per share for FY25. Analyst sentiment on Tata Motors is divided: out of 34 analysts, 19 recommend 'Buy', nine 'Hold', and six 'Sell'. Brokerages have issued mixed ratings, with CLSA maintaining an 'Outperform' rating and a target price of ₹805, while Jefferies rates the stock 'Underperform' with a target of ₹630. Kotak Institutional Equities downgraded the stock to 'Sell' with a target of ₹600, citing concerns about JLR's exposure to tariffs and weak demand in China. Tata Steel reported a 117% increase in consolidated profit to ₹1,200.88 crore in the March quarter, despite a 4.2% decline in revenue to ₹56,218.11 crore. Lower input costs and improved sales volumes contributed to the profit growth. The company guided for an increase in steel realisation by ₹3,000 per tonne quarter-on-quarter and a further decline in coking coal cost by $10 per tonne, with Q1FY26 EBITDA per tonne expected to rise by approximately ₹2,000. The Netherlands operations' profitability improved, while losses at the UK operations remain high. Tata Steel expects its Europe operations to deliver positive EBITDA from Q1FY26. The company plans a capital expenditure of ₹15,000 crore for FY26, with 75% allocated to its Indian operations. Tata Steel shares rallied up to 5% following the results, and brokerages including Nuvama and Emkay Global upgraded their ratings and raised target prices, with Nuvama setting a target of ₹177 per share.