Tata Motors Ltd., is likely to report a 25-42% year-over-year (YoY) growth in net profit for the September quarter. Analysts recommend keeping an eye on management's comments about high passenger vehicle (PV) stocks, escalating discounts, and the outlook for festive demand. Tata Motors shares fell 0.97 percent to Rs 811.85 on the BSE ahead of the quarterly results.

According to PL Capital, Tata Motors' adjusted net profit is likely to rise by 28.4% year on year to Rs 4,990 crore from Rs 3,887 crore in the same quarter last year. Sales increased 2.9% year on year to Rs 1,08,171 crore from Rs 1,05,128 crore in the same period last year. The margin is predicted to rise by 67 basis points to 13.7%, while EBITDA is expected to grow by 8.2% to Rs 14,845 crore.

"Supply chain constraints to be partially offset by lower penetration of Jaguar portfolio which could result in Ebitda margin expansion by 67 bps YoY," stated PL Capital.

According to Elara Securities, Tata Motors' Q2 earnings could reach Rs 5,352 crore, representing a 42% YoY increase. Sales have increased by 1.1% to Rs 1,05,128 crore. According to the report, Tata Motors' PV segment experienced a significant increase in model mix, which raised average selling price (ASP) QoQ.

Sharekhan's Q2 earnings increased by 25% to Rs 4,807 crore from Rs 3,845 crore YoY. Sales are down 3.9% year over year to Rs 1,01,070 crore from Rs 1,05,128 crore.

According to BNP Paribas, Tata Motors may suffer from JLR's decreased wholesale volume. It recognizes the possibility of unpleasant surprises. It stated that the management's remarks regarding the high PV inventory levels, growing discounts, and the outlook for festive demand will be crucial to keep an eye on in the second quarter of FY25.

"That said, given the weakening auto demand globally (and recent guidance cut by global peers), we now see a risk of JLR cutting its FY25 guidance, eventually pushing next-year’s guidance by a year," it stated.