Mumbai, June 20, 2025: Tata Motors Ltd has announced that it is debt-free on a consolidated basis for the first time in over a decade. This milestone coincides with the company’s plan to separate its passenger vehicle (PV) and commercial vehicle (CV) businesses into two independently listed firms by the end of 2025. The declaration of its debt-free status was made alongside a report of record consolidated revenue at ₹4,39,695 crore for FY25.
"Taking the three businesses together, your company delivered a strong performance to surpass several earlier milestones, despite a complex macro environment in FY25. On a consolidated basis, it delivered record high revenue of ₹4,39,695 crore, EBITDA of ₹57,649 crore, and record high PBT (before exceptional items) of ₹34,330 crore, leading to the Tata Motors Group becoming debt-free this year." Chairman Chandrasehkar said during the company’s 80th Annual General Meeting (AGM).
Tata Motors confirmed that its ongoing shift toward electric vehicles (EVs) is a central part of its strategic focus. “This has been a landmark year for Tata Motors,” Chairman, added. “With the demerger progressing well, we are unlocking the next phase of value creation.”
The company reported record profits as well. Tata Motors achieved an EBITDA of ₹57,649 crore and a profit before tax (excluding exceptional items) of ₹34,330 crore.
The Board has recommended a final dividend of ₹6 per share, pending shareholder approval. The demerger, first announced earlier this year, will allow Tata Motors to operate as two focused entities: one dedicated to the CV business and the other combining the PV and Jaguar Land Rover (JLR) sectors. Chandrasekaran emphasised that each business is now “independently healthy, financially fit, and led by strong management.”
Tata Motors' commercial vehicle unit generated ₹75,100 crore in revenue, achieving a record EBITDA of ₹8,800 crore and ₹7,500 crore in free cash flow
The company increased its market share in trucks and buses, though it still aims to improve small CV sales. In the passenger vehicle segment, strong growth was led by the Tata Punch, which is now India’s best-selling SUV. Sales of CNG and EVs together accounted for 36% of total PV sales, contributing to a revenue of ₹48,445 crore.
EBITDA margins improved by 40 basis points compared to the previous fiscal year, thanks to cost control and localization efforts. Jaguar Land Rover also performed well, generating £28.9 billion in revenue and £2.5 billion in pre-tax profit, driven by ongoing demand for its Range Rover and Defender models. JLR also became net cash positive this year.
To boost its presence in India, Tata has localised CKD manufacturing of the Range Rover and Range Rover Sport, bringing premium products closer to Indian consumers. Looking ahead, Tata Motors is well-positioned to navigate a landscape characterised by geopolitical tensions, supply chain shifts, AI disruption, and an accelerating energy transition.
EVStory.in - India's best EV Portal
