Tata Motors' Q3 Profit Falls Amidst New Labour Code Challenges

Tata Motors reported a 48% decline in net profit for Q3 2025, attributed to new labour code provisions and the demerger process. Despite this, revenue rose to Rs 21,847 crore. The company remains optimistic, citing infrastructure demand and strategic actions as positives for future growth.

Tata Motors on Thursday announced a significant 48% decrease in its consolidated net profit for the third quarter of 2025, reporting Rs 705 crore, largely impacted by provisions related to the new labour code and the demerger process. In contrast, the automaker had recorded a net profit of Rs 1,355 crore in the same timeframe last year.

The company's revenue from operations, however, increased to Rs 21,847 crore from Rs 18,819 crore, showcasing a growth despite the profit drop. Exceptional items affecting the quarterly financials amounted to Rs 1,600 crore, including Rs 603 crore from the labour code impact, Rs 962 crore from the demerger, and Rs 82 crore from acquisition costs.

CEO Girish Wagh emphasized that the firm achieved a strong financial performance supported by festive season demand and GST 2.0 effects. He expressed optimism about sustaining momentum, highlighting government infrastructure initiatives and sector expansion as future growth drivers. Tata Motors shares saw a modest rise of 0.45% on Thursday, closing at Rs 470.20 on BSE.

(With inputs from agencies.)