A market shake-up or a temporary setback for Tata Motors?
Tata Motors’ stock took a significant hit, falling 9% to Rs 684.25, reaching a fresh 52-week low. But what triggered this sudden dip? A deeper look into the Tata Motors Q3 FY25 results and brokerage reactions reveals the reasons behind this sharp decline.
Also read: Adani Power Q3 results overview: Net profit rises 12%
Tata Motors Q3 FY25 results: Key financials
Tata Motors’ latest quarterly results fell short of market expectations, leading to downgrades by brokerages and a steep decline in its stock price. Let’s break down the numbers:
| Financial Metric | Q3 FY25 | Q3 FY24 | YoY Change |
| Net Profit | Rs 5,451 crore | Rs 7,145 crore | -22% |
| Revenue from Operations | Rs 1.13 lakh crore | Rs 1.10 lakh crore | +3% |
| EBITDA | Rs 13,032 crore | Rs 15,333 crore | -15% |
| EBITDA Margin | 11.5% | 13.9% | -240 bps |
| Passenger Vehicle Revenue | Rs 12,400 crore | Rs 12,960 crore | -4.3% |
| Commercial Vehicle Revenue | Rs 18,400 crore | Rs 20,090 crore | -8.4% |
Why did the stock crash?
1. Missed earnings estimates
Tata Motors reported a 22% YoY decline in net profit, significantly lower than market estimates. Despite 3% revenue growth, EBITDA margins contracted by 240 bps, reflecting increased costs and lower profitability.
2. Downgrades by major brokerages
Several global brokerage firms reacted negatively to Tata Motors’ Q3 performance:
| Brokerage | Previous Rating | New Rating | Price Target (Revised) |
| Jefferies | Buy | Underperform | Rs 660 (from Rs 930) |
| Nuvama | Reduce | Reduce | Rs 720 (from Rs 750) |
| Morgan Stanley | Equal-weight | Equal-weight | Rs 853 (from Rs 920) |
| UBS | Sell | Sell | Rs 760 |
| Goldman Sachs | Neutral | Neutral | Rs 800 |
Jefferies, in particular, slashed its target price by 29%, citing weak JLR demand, increasing competition in the EV segment, and slower growth in the Indian CV and PV sectors.
Also read: IDFC First Bank Shares Drop 7% After Microfinance Weighs on Q3 Profit
3. Jaguar Land Rover (JLR) concerns
While JLR posted record Q3 revenue, its growth trajectory has raised concerns. Nuvama predicts JLR volume contraction due to order book depletion, discontinuation of Jaguar models, and weaker demand in China and Europe.
JLR’s Q3 FY25 performance:
- Revenue: £7.5 billion (+1.5% YoY)
- EBIT: 9.0%
- PBT: £523 million (down from £627 million YoY)
4. Technical weakness and broader trends
Tata Motors shares are trading below all key moving averages (5-day to 200-day), signaling weak technical strength. The stock has fallen 40% in the last six months and is down 7% in 2025 so far.
| Indicator | Status |
| 5-day Moving Average | Below |
| 10-day Moving Average | Below |
| 50-day Moving Average | Below |
| 200-day Moving Average | Below |
Is this a long-term concern or a buying opportunity?
Despite the negative sentiment, Tata Motors remains one of India’s leading auto manufacturers. The company’s fundamentals are still strong, but near-term challenges like weak margins, competition, and JLR headwinds could keep the stock under pressure.
You may also read: ACC Share Price Declines After Q3 Results: Investment Advice
Factors to watch:
- Recovery in JLR sales, especially in China
- Impact of upcoming product launches
- EV and hybrid vehicle growth prospects
- Government policies on auto sector incentives
Investors should tread cautiously, keeping an eye on future earnings and global market trends before making any decisions.
