Tata Motors Share Price Drops to a 15-Month Low

Tata Motors’ share price fell by 1.97% to ₹648.55 on February 27, 2025, marking its 4th consecutive day of decline. The stock has shed over 6% in the last 4 trading sessions, reaching an intraday low of ₹645.65—its weakest level in 15 months.

Over the past 6 months, Tata Motors’ stock has seen a sharp correction, declining by 40%, while the benchmark Sensex has dropped by 8.61% during the same period.

Q3FY25 Financial Performance: Key Highlights

Despite a marginal rise in revenue, Tata Motors’ financial performance for Q3FY25 reflected a mixed trend:

• Revenue: The consolidated topline for Q3FY25 stood at approximately ₹1.13 lakh crore, marking a 2.7% year-on-year (YoY) increase.
• EBITDA & Margins:
  • Overall EBITDA stood at around ₹15,800 crore, with EBITDA margins at 13.9%, reflecting a 49-basis-point quarter-on-quarter (QoQ) decline.
  • Jaguar Land Rover (JLR), Tata Motors’ overseas luxury passenger vehicle (PV) segment, reported EBITDA margins of 14.2% (up 250 bps QoQ).
  • The Indian commercial vehicle (CV) business registered EBITDA margins of 12.4% (up 160 bps QoQ).
  • The passenger vehicle (PV) segment posted EBITDA margins of 7.8% (up 160 bps QoQ).
• Profit After Tax (PAT): PAT for Q3FY25 stood at ₹5,451 crore, witnessing a 22% YoY decline.
• PLI Scheme Support: Margins in the Indian PV and CV segments were bolstered by benefits from the Production-Linked Incentive (PLI) scheme for FY24 and accrued incentives for YTDFY25.

February Performance: A Historically Weak Month for Tata Motors

An interesting historical trend reveals that Tata Motors’ stock has typically struggled in February. Since 2016, it has managed to close the month in positive territory only twice—registering gains of 22.93% in 2021 and 7.46% in 2024.

However, February 2020 saw the stock suffer its steepest decline in over a decade, dropping 26.98%, marking its worst February performance since 2009.

Conclusion

With the stock currently at multi-month lows and market sentiment remaining cautious, investors will closely monitor Tata Motors’ next set of financials. 

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