Tata Motors Q3 Preview: Here's what to expect from auto major in Dec qtr

Tata Motors Q3 Preview: Automobile major Tata Motors is expected to announce its December quarter results on January 29, 2025. The company‘s Q3 performance is expected to show varied results across its segments, with revenue growth driven by the strength in JLR and the India passenger vehicle (PV) divisions. 

 

Analysts project a consolidated revenue of around Rs 1,12,248 crore-Rs 1,18,340 crore, reflecting a growth in the range of 1.5-7 per cent Y-o-Y. 

 

The profitability for the quarter may face challenges, with adjusted PAT forecasts indicating a 5-14 per cent Y-o-Y decline, reflecting weaker operating leverage and market conditions.

 

Tata Motors shares were buzzing in trade ahead of Q3 results. At 2:35 PM, Tata Motors share was trading 3.43 per cent higher at Rs 737.60. 

 

Given this, here’s what to expect in Q3FY25 results from Tata Motors:

 

Nomura

 

Overall, revenue is expected to increase approximately 7 per cent Y-o-Y, with the Ebitda margin rising 130 bps Q-o-Q to 13.3 per cent, primarily driven by JLR, Nomura said. CV/PV revenues are expected to decline by -1 per cent/-3 per cent Y-o-Y, with Ebitda margins at 11.4 per cent/5.9 per cent (up 66bps Q-o-Q/down 20bps Q-o-Q) due to weak operating leverage.  ALSO READ: Maruti Suzuki Q3 preview: Profit may climb up to 23%, revenue by 17% YoY

 

Thus, they estimate revenue of Rs 1,18,340.2 crore, up 7 per cent Y-o-Y; Ebitda of Rs 15,764.1 crore, up 2 per cent, Ebitda margin at 13.3 per cent, and adjusted PAT at Rs 6,113.9 crore, down 14 per cent Y-o-Y.

 

Kotak Institutional Equities

 

Tata Motors’ domestic PV business Ebitda is projected to improve 5 per cent Y-o-Y (60 bps Q-o-Q) in Q3FY25, driven by a richer product mix and profitability gains in the EV PV business due to declining battery prices. They also expect Tata Motors’ domestic CV business Ebitda to remain flat Y-o-Y in Q3FY25. 

 

Thus, analysts project consolidated revenue of Rs 1,12,248.7 crore, up 1.5 per cent Y-o-Y; Ebitda down 8.3 per cent Y-o-Y to Rs 14,055.5 crore; Ebitda margin at 12.5 per cent; Adjusted PAT down 5 per cent Y-o-Y to Rs 5,339.5 crore.

 

Nuvama

 

Analysts at Nuvama said, revenue growth Y-o-Y is expected to be supported by growth in JLR and the India PV divisions. The Ebitda margin is anticipated to expand due to better margins in India CV and PV divisions. A key factor to monitor, they believe, will be the JLR demand and margin outlook.

 

Thus, analysts predict revenue at Rs 1,17,615.9 crore, up 6 per cent Y-o-Y; Ebitda at Rs 17,132.4 crore, up 12 per cent Y-o-Y; PAT at Rs 7,669.8 crore, up 9 per cent Y-o-Y.  ALSO READ: Bajaj Auto Q3 preview: 2W growth may aid revenue; PAT may rise up to 7% YoY

 

Sharekhan

 

The automobile sector is expected to maintain single-digit revenue growth, though Ebitda margins are likely to contract, mainly due to changes in the product mix in some cases and increased promotional offers to clear inventory post-festive season.

 

Thus, it expects Tata Motors to post revenue of Rs 1,13,342 crore, up 2.5 per cent Y-o-Y; Ebitda margin at 12 per cent; PAT down 5 per cent Y-o-Y to Rs 6,677 crore.