N Chandrasekaran: 'Confident in the future of Tata Motors brands, resilience of business'
Tata Motors caps a milestone year with all-time high earnings, a demerger and a transformative push into AI and sustainable mobility.
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Tata Motors Ltd celebrated its 80th anniversary with a mix of financial high notes, bold restructuring plans and forward-leaning bets on technology and sustainability.
The auto major reported record consolidated revenue of ₹4,39,695 crore for fiscal year 2025, alongside an EBITDA of ₹57,649 crore and a pre-exceptional profit before tax of ₹34,330 crore. For the first time in recent memory, the company also emerged debt-free on a consolidated basis - a feat that Tata Sons' Chairman N. Chandrasekaran described as "steady progress amid a complex operating environment."
But financial performance was just one part of a broader transformation. Tata Motors announced a significant corporate restructuring, with plans to demerge into two separate listed entities: one housing its commercial vehicle operations and the other encompassing passenger vehicles, electric mobility, and Jaguar Land Rover (JLR). The demerger, approved by shareholders and expected to take effect in the second half of FY26, aims to give each business sharper strategic focus and improved capital allocation.
While the year began with optimism around global growth and declining inflation, hopes dimmed amid rising trade tensions and macroeconomic uncertainty. Chandrasekaran noted a slowdown in expected global GDP growth as policy unpredictability and inflationary pressures created headwinds for industries worldwide.
Despite these challenges, Tata Motors managed to navigate supply chain disruptions and inconsistent demand, particularly in export markets, through what the company called “agility and focus.”
In one of the letter’s most forward-looking sections, Chandrasekaran outlined his vision for the transformative impact of Artificial Intelligence and Generative AI — calling it a "civilisational shift" on par with the advent of electricity. AI, he said, is becoming a cornerstone of the company's product strategy, from design and manufacturing to smart vehicle features like fuel optimization and driver-assist technologies.
"Unlike previous technological revolutions that arrived sequentially across the globe, AI/Gen AI is emerging simultaneously everywhere and impacting the pace of change of other technologies,” he wrote.
Simultaneously, Tata Motors has doubled down on sustainability - a pillar of the broader Tata Group ethos. Under the group-wide ‘Aalingana’ initiative, Tata Motors has set phased targets for net-zero emissions: 2039 for JLR, 2040 for passenger vehicles, and 2045 for commercial vehicles. The company is already deploying over 3,600 electric buses in India and increasing the share of CNG and electric vehicles, which now comprise 36% of its passenger vehicle portfolio.
The biggest structural development came with the decision to split Tata Motors into two independently listed entities - a move the company says will allow for greater strategic clarity, operational agility, and focused value creation. The passenger vehicle and electric vehicle unit will be combined with Jaguar Land Rover under one umbrella, while the commercial vehicles division will operate separately.
The company also completed the delisting of its differential voting rights (DVRs) and merged its financing arm Tata Motors Finance with Tata Capital - streamlining the capital structure in preparation for the demerger.
Despite acknowledging geopolitical uncertainties and uneven EV adoption across global markets, Chandrasekaran expressed confidence heading into FY26. “We remain vigilant to global volatility,” he wrote, but added that he is confident "in the future of our brands and the resilience of our business. Our focus remains on delivering consistent growth, enriching customer experience, and innovating for a cleaner, safer, and more connected mobility future."
