Tata Motors jumps on strong Q3, analysts raise estimates

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26 Aug, 2025 12:21

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Moneycontrol Bureau

Tata Motors shares accelerated over 7% on Wednesday as the street cheered the India's largest commercial vehicle maker's significantly better-than-expected consolidated growth in the third quarter.

The company had on Tuesday reported a 40.5% year-on-year rise in consolidated net profit at Rs 3,405.6 crore, while revenue surged 44% to Rs 45,260.3 crore in the October-December quarter. This was better than analysts' expectation of a profit of Rs 2,500 crore on revenue of Rs 43,365 crore, according to a CNBC-TV18 poll.

The strong growth in the third quarter, was mainly boosted by its UK-based luxury Jaguar Land Rover unit. JLR, which accounts for a majority of Tata Motors' profits and revenue, saw 57% rise in profit and 41% rise in revenue, on the back of strong demand for new models like the Range Rover Evoque in markets like China.

However, the standalone results "disappointed" many. The standalone net profit in the third quarter slumped near 58% from a year ago to Rs 173.7 crore due to rising costs and foreign exchange losses, even as revenue rose 18% to Rs 13,337.9 crore.

Several analysts raised their sales and earnings forecasts for fiscal 2013, banking on robust growth at JLR. However, the stock has appreciated 71% since September 30 and over 25% in the last month alone, which leaves limited room for upside, they say.

Here's a look at how analysts viewed Tata Motors' third quarter performance and the road ahead:

CLSA: Tata's strong third quarter results highlight the multiple positive tailwinds that continue to boost JLR