Tata Motors is entering a transformative phase as it moves forward with a planned demerger, aiming to operate as two independent, publicly-listed entities by the end of the calendar year — one focused on Commercial Vehicles (CV) and the other encompassing Passenger Vehicles (PV) and Jaguar Land Rover (JLR).
This strategic move follows years of sustained efforts to strengthen, streamline and simplify operations across business segments.
“Over the past few years, we have significantly strengthened, streamlined and simplified the business. Each business—Commercial Vehicles, Passenger Vehicles and JLR—is healthy, financially fit and guided by its own strategy, led by independent management teams,” said N. Chandrasekaran, Chairman of Tata Motors, at the company’s 80th AGM.
Outperforming the industry
The CV segment delivered an impressive performance in FY25, generating ₹75,100 crore in revenue and a record EBITDA of ₹8,800 crore. With ₹7,500 crore in free cash flow and a strong Return on Capital Employed (ROCE) of 37.7%, the business significantly outperformed the industry. While gaining market share in trucks and buses, the company acknowledged that improving its underperforming small commercial vehicle segment remains a key focus for the coming year.
Diving innovation
In the PV segment, the Tata Punch emerged as India’s top-selling SUV. Multi-powertrain offerings—including CNG and electric vehicles—now make up 36% of the portfolio. The business recorded ₹48,445 crore in revenue and an EBIT of 0.9%. Cost discipline and increased localization contributed to a 40-basis-point improvement in EBITDA over the previous fiscal year.
A strong show
Jaguar Land Rover delivered robust results with revenues of £28.9 billion and an EBIT margin of 8.5%, leading to a profit before tax of £2.5 billion. JLR also achieved net cash status during the year. The continued success of the Range Rover and Defender models fueled this growth. In India, the company localized CKD manufacturing of the Range Rover and Range Rover Sport, making the brands more accessible.
A record year
The Tata Motors Group posted record-breaking figures: consolidated revenue of ₹4,39,695 crore, EBITDA of ₹57,649 crore, and profit before tax (excluding exceptional items) of ₹34,330 crore. Most significantly, the company became debt-free in FY25—an important milestone ahead of its corporate restructuring.
Looking ahead, Chandrasekaran noted that volatility will continue to define global economic cycles—driven by geopolitical conflicts, supply chain shifts, changing tariff regimes, AI, and the energy transition.
“Given the enormous amount of work we have done over the past few years—from simplifying the businesses to making big strategic bets and strengthening our financial position—our businesses are structured not just to handle this environment, but to thrive,” he added.