Tata Motors posts strong Q4 profit jump despite warning of near-term cost pressures

Tata Motors Ltd reported a sharp rise in fourth-quarter profit, even as it cautioned about near-term cost pressures driven by global disruptions, including the ongoing Iran conflict. The company’s net profit for the quarter ended March 31 rose nearly 70% year-on-year to 24.06 billion rupees ($251.4 million), compared with 14.19 billion rupees a year earlier.

The strong performance was supported by a surge in demand for commercial vehicles, which received a boost after India reduced taxes on the segment from 28% to 18% in late September. This helped offset rising raw material costs triggered by geopolitical tensions, while overall sales climbed 25%, with domestic sales up 26%.

Revenue also increased significantly to 244.52 billion rupees from 199.99 billion rupees a year earlier. Despite persistent headwinds such as higher commodity prices, Tata Motors Passenger Vehicles Ltd said it remains confident of managing pressures through cost efficiencies, pricing discipline, and supply chain measures.