Tata Motors recently revealed its financial results for the fourth quarter of FY25 on May 15, 2025, capturing the attention of investors and market analysts alike. The company has declared a final dividend of ₹6 per share, marking a significant 300% payout for the fiscal year. This announcement adds to the excitement surrounding Tata Motors as it navigates through its financial landscape and prepares for a strategic business restructuring.

Key Dividend Announcement from Tata Motors

In a notable shift from the previous fiscal year, where the dividend was ₹3 per share, Tata Motors has decided to increase the final dividend to ₹6 per share for FY25. This payout reflects the company’s commitment to rewarding its shareholders and is based on a face value of ₹2 per share. Eligible shareholders can expect to receive this dividend payment before June 24, 2025.

Tata Motors’ Strategic Demerger Plans

As part of its restructuring strategy, Tata Motors is progressing with a planned demerger, which received shareholder approval on May 6, 2025. According to PB Balaji, CFO of Tata Motors, “The approval from shareholders puts us in a strong position to unlock the full potential of each segment of our business.” This strategic move is anticipated to enhance operational efficiency and shareholder value.

Q4FY25 Financial Performance Overview

During the quarter spanning January to March 2025, Tata Motors reported a net profit decline to ₹8,470 crore, down from ₹17,552 crore in Q4 of the previous year. This dip in profitability was primarily attributed to a slight reduction in total revenue, which fell to ₹1.19 lakh crore from ₹1.23 lakh crore in Q4 of FY24. Nevertheless, the company showcased robust operational performance with an EBITDA of ₹16,644 crore and a margin of 13.9%.

Performance by Segment: JLR and Commercial Vehicles

Tata Motors’ luxury division, Jaguar Land Rover (JLR), experienced a nearly 2% drop in revenue but managed to sustain an EBITDA margin of 15%. Meanwhile, the commercial vehicle sector saw a minor revenue decline of 0.5%. However, the passenger vehicle segment faced a more significant challenge, reporting a 13% decrease in revenue during the same quarter.

Market Reaction to Q4 Results

Following the release of its Q4 earnings, Tata Motors’ share price dipped by approximately 2.5% in early trading. Over the past year, the stock has endured a decline of about 28%, though it has provided a 12% return to investors in the same timeframe. Currently, Tata Motors boasts a market capitalization of ₹2.57 lakh crore. In 2025, the share price has seen a 7% decrease, with a 52-week high of ₹535.75 and a low of ₹1,179 per share.

In summary, Tata Motors is navigating a complex financial landscape, balancing shareholder returns with strategic restructuring. As the company moves forward, its efforts to enhance operational efficiencies and capitalize on growth opportunities will be closely watched by investors and market analysts alike.