Tata Motors reports sharp fall in Q4 profit, stock sinks 1%; should you buy, sell, or hold?

Tata Motors posted a 51 percent decline in consolidated net profit to Rs 8,470 crore in Q4.

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Automobile giant Tata Motors Ltd. shares closed 1 percent in trade on Wednesday, May 14 after reporting a 51 percent fall in net profit for the quarter ended March 2025.

Tata Motors on Tuesday, May 13, reported a 51 percent decline in consolidated net profit to Rs 8,470 crore for the fourth quarter ended March 2025. The company had posted a consolidated net profit of Rs 17,407 crore in the same quarter last fiscal, Tata Motors said in a regulatory filing.

Its consolidated total revenue from operations increased 0.4 percent at Rs 1,19,503 crore against Rs 1,19,033 crore in the year-ago period, thus missing estimates.

Meanwhile, the sales volumes at JLR rose 1.1 percent in the quarter, helped by strong demand for its highly profitable SUVs in North America and Europe.

While that growth has slowed over the last few quarters due to falling China sales, the high-margin business has been able to offset weak demand in Tata Motors' home market where it sells cars, trucks and buses. Revenue at JLR grew 2.4 percent.

At close, the stock ended at Rs 700, down 1.02 percent from the last close on the NSE.
Should you buy, sell, or hold shares of Tata Motors?

International brokerage CLSA maintained an 'outperform' rating on Tata Motors with a target price of Rs 805 per share. The brokerage noted that while JLR remains cautious about demand in FY26 due to tariffs and varied macroeconomic conditions, it does not expect the luxury passenger vehicle market to be significantly impacted.

While near-term growth challenges persist, domestic broking house Emkay Global believes profitability should largely sustain, led by focus on mix and costs; valuation is comfortable, despite strong operational/financial improvements in the past few years. The brokerage maintained its 'buy' rating, with an unchanged target price of Rs 800 per share.

On the flip side, Jefferies has given an 'underperform' rating on Tata Motors, setting a target price of Rs 630 per share. The firm highlighted that Tata Motors' fourth-quarter EBITDA declined by 2 percent, mainly due to lower margins at JLR. It expects a challenging year ahead for JLR, citing pressure from US tariffs, increasing competition in China, and rising customer acquisition costs.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.