Tata Motors Limited: Comprehensive Stock Analysis Report | Scrolls
- Editor
- Oct 8
- 3 min read
by KarNivesh | 08 October, 2025
Overview
Tata Motors Limited, India’s largest automobile manufacturer and a global player through its subsidiary Jaguar Land Rover (JLR), has successfully transformed itself into a financially robust and operationally strong company. Founded in 1945 and headquartered in Mumbai, Tata Motors operates across four main segments: JLR (65.9% of revenues), Commercial Vehicles (17.1%), Passenger Vehicles including EVs (11%), and others (6%). With a presence in 175 countries and a workforce of over 59,000, Tata Motors embodies a truly global automotive enterprise.
In FY25, Tata Motors reported record consolidated revenues of ₹4,39,695 crores, achieving a net auto cash-positive position for the first time in years. The company’s profitability, although slightly lower than the previous year, remained strong with a net profit of ₹28,100 crores and a return on equity (ROE) of 23.96%. The debt-to-equity ratio improved dramatically from 3.14x in FY22 to 0.54x in FY25, reflecting disciplined deleveraging and improved operational efficiency. Free cash flow of ₹22,400 crores further underscored its financial resilience.
A major strategic milestone is the demerger of Tata Motors into two listed entities-TML Commercial Vehicles Ltd (TMLCV) and the passenger vehicles/EV division-effective October 1, 2025. This move aims to unlock shareholder value, allowing focused strategies for each business. Leadership transitions have been aligned accordingly, with Shailesh Chandra leading the passenger and EV division, Girish Wagh managing the commercial vehicle business, and PB Balaji taking charge as CEO of JLR.
Tata Motors’ domestic performance has been bolstered by its leadership in the electric vehicle segment, commanding over 70% of the market. The company plans to invest ₹18,000 crores over the next six years to expand its EV portfolio with ten new models by FY26. Strategic partnerships with Tata Power and Agratas for battery manufacturing strengthen its EV ecosystem. Notably, the Curvv EV, offering a 585 km range and competitive pricing, marks a major breakthrough in addressing range anxiety and cost barriers.
JLR, contributing nearly two-thirds of revenues, continues to anchor Tata Motors’ global operations. Its “Reimagine” strategy focuses on electrification, with Jaguar transitioning to an all-electric brand by 2026 and Land Rover launching multiple EVs. Investments worth around ₹1.88 lakh crores (approximately £18 billion) over five years are planned for EV and battery technology, supported by Agratas’ upcoming gigafactory in the UK.
In the competitive landscape, Tata Motors ranks fourth by market capitalization among Indian automakers but leads in revenue generation. Its price-to-earnings (PE) ratio of 12.44x and price-to-book (PB) ratio of 2.11x make it attractively valued compared to peers like Maruti Suzuki and Mahindra & Mahindra. The company’s ROE of nearly 24% and strong liquidity position (₹67,428 crores in cash and investments) indicate solid fundamentals.
At a current share price of ₹716, Tata Motors’ market capitalization stands at ₹2,63,629 crores. Despite being 22.6% below its 52-week high, analysts remain optimistic, with a median target price of ₹830 suggesting further upside. The company has resumed dividends at ₹6 per share, maintaining a payout ratio of 25–40% of profits.
With strong corporate governance under N. Chandrasekaran, strategic diversification, and leadership in EVs, Tata Motors is well-positioned for sustained growth. Its disciplined financial management, commitment to innovation, and focus on electrification reinforce its trajectory as a global automotive powerhouse in the evolving mobility landscape.
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