Weak JLR, local sales bring down Tata Motors Q2 profit

From Q3 onwards, the firm hopes to accrue benefits it's poised to get from the PLI scheme

- Alisha Sachdev

Tata Motors reported a drop in consolidated net profit in the second quarter of FY25, dragged down by weaker sales across its luxury car arm Jaguar Land Rover and domestic commercial and passenger vehicle businesses.

Net profit for the quarter ended 30 September fell 11% to ₹3,343 crore year-on-year (y-o-y), while revenue from operations declined for the first time in ten quarters by 3.7% to just over ₹1 trillion.

A shortage in aluminium supply impacted profitability at JLR, which accounts for two-thirds of Tata Motors' revenues.

Lower wholesales for JLR and the India passenger vehicle business both impacted the company's operational performance, P.B. Balaji, group chief financial officer, Tata Motors, said in a post-earnings conference call.

Ebitda—earnings before interest, taxes, depreciation and amortization—margin declined 230 bps y-o-y to 11.4%.

Ebitda, a measure of profitability, was down 14.2% at ₹11,736 crore for the quarter y-o-y.