Tata Motors vs Mahindra FY25: Which Auto Stock to Pick?

India’s automobile market in FY25 was dominated by two heavyweights Tata Motors and Mahindra & Mahindra (M&M). Both companies posted strong financials but followed different growth paths. While Tata surged on the back of Jaguar Land Rover (JLR) and EV expansion, Mahindra benefited from robust SUV sales and tractor leadership.

This article breaks down their latest numbers, valuations, and strategic moves to help investors decide which stock offers better long-term value.

Table of Contents

1. Tata Motors vs Mahindra: Q4 FY25 Financial Results Summary
2. Share Price Trends After FY25 Q4 Results
3. FY25 Full-Year Financial Performance: Tata Motors vs Mahindra
4. Segment-Wise Business Analysis: JLR vs SUV & Tractor Growth
5. Valuation Comparison and Key Shareholder Metrics
6. Analyst Ratings and Investment Sentiment on Tata & Mahindra
7. Strategic Growth Outlook: Global EV Bet vs Rural SUV Play
8. Peer Valuation and Auto Sector Benchmarking
9. Conclusion: Tata Motors or Mahindra, Which Stock to Buy?
10. FAQs: Tata Motors vs Mahindra FY25 Performance

Tata Motors vs Mahindra: Q4 FY25 Financial Results Summary 

Tata Motors and Mahindra & Mahindra delivered strong Q4 FY25 performances, each powered by different core strengths. Tata’s growth was led by the turnaround at Jaguar Land Rover and expanding electric vehicle sales. Meanwhile, Mahindra sustained steady growth through robust SUV demand and tractor market leadership. These results highlight their unique strategies shaping India’s auto sector landscape.

Tata Motors’ sharp profitability jump stemmed from JLR’s turnaround, while Mahindra sustained growth via SUVs and tractors.

Share Price Trends After FY25 Q4 Results

After the Q4 FY25 earnings, Tata Motors’ stock experienced a slight dip, falling from ₹720.5 before results to a post-results low of ₹707.9, currently trading at ₹712 as of 3 June, reflecting a year-to-date return of -5%. In contrast, Mahindra & Mahindra’s share price rose steadily from ₹2,926.2 pre-results to a post-results high of ₹3,021.4, currently standing at ₹3,025, with a more modest YTD return of -1.8%. While Tata faced a mild correction despite strong earnings, Mahindra’s stock showed resilient upward momentum.

Stock movement post-Q4 FY25 earnings:

• Tata Motors
  • Pre-results (12 May 2025): ₹720.5
  • Post-results high: ₹707.9
  • Current (3 June): ₹712
  • YTD Return: -5%
     
• Mahindra & Mahindra
  • Pre-results (2 May 2025): ₹2,926.2
  • Post-results high: ₹3,021.4
  • Current (3 June): ₹3,025
  • YTD Return: -1.8%

Tata faced a mild correction despite strong numbers, while Mahindra maintained a steady uptrend.

FY25 Full-Year Financial Performance: Tata Motors vs Mahindra

Tata Motors reported a remarkable net profit of ₹28,139 crore on revenues of ₹4.39 lakh crore, significantly outperforming Mahindra & Mahindra’s ₹14,073 crore profit on ₹1.59 lakh crore revenue. Tata also made a massive debt reduction of ₹36,000 crore, boosting its return on capital employed (ROCE) to 20%, compared to Mahindra’s 14%. Tata’s profit compound annual growth rate (CAGR) over three years stood at an impressive 65%, while Mahindra posted a steady 27.2%, reflecting its focus on consistent growth.

Tata Motors’ turnaround delivered exceptional profits, while Mahindra focused on steady compounding.

Segment-Wise Business Analysis: JLR vs SUV & Tractor Growth 

Tata Motors derives 71% of its revenue from Jaguar Land Rover (JLR), supported by an aggressive electric vehicle rollout through Tata Passenger Electric Mobility. Its commercial vehicle margins are improving, backed by diversified global revenue streams. Meanwhile, Mahindra & Mahindra dominates the tractor market with a 40% share and drives strong SUV sales with models like Scorpio-N, Thar, and XUV700. It is also expanding capacities to meet rural and urban demand, while entering the EV space via its Born Electric platform.

Tata Motors

• JLR accounts for 71% of revenue
• Aggressive EV rollout via Tata Passenger Electric Mobility
• CV margins improving
• Diversified global revenue streams

Mahindra & Mahindra

• Tractor market share: 40%
• SUVs: Scorpio-N, Thar, XUV700 drive bookings
• Scaling capacities for rural & urban demand
• EV entry via Born Electric platform

Valuation Comparison and Key Shareholder Metrics (FY25)

Tata Motors trades at a significantly lower P/E ratio of 9.28 compared to Mahindra & Mahindra’s 29.7, reflecting its undervalued status. Its EV/EBITDA multiple of 4.67 is also much lower than Mahindra’s 14. Dividend yields are comparable at 0.84% for Tata and 0.70% for Mahindra. Tata’s promoter holding stands strong at 42.58%, more than double Mahindra’s 18%. Market capitalization favors Mahindra at ₹3.85 lakh crore versus Tata’s ₹2.61 lakh crore, reflecting Mahindra’s premium valuation for stability.

Tata looks undervalued on P/E and EV/EBITDA, while Mahindra enjoys a valuation premium for stability.

Analyst Ratings and Investment Sentiment on Tata & Mahindra

Analysts mostly recommend Tata Motors as a Buy, citing its margin expansion and significant debt reduction, though concerns about JLR’s cyclicality persist. Mahindra & Mahindra receives a Hold to Add rating, supported by strong SUV momentum, but analysts remain cautious due to its elevated valuation levels.

Tata Motors

• Mostly rated Buy for margin expansion and debt reduction
• JLR cyclicality remains a concern

Mahindra

• Rated Hold to Add based on SUV momentum
• Analysts cautious on elevated valuation

Strategic Growth Outlook: Global EV Bet vs Rural SUV Play 

Tata Motors is spearheading India’s electric vehicle revolution, backed by a capital-intensive EV roadmap for Jaguar Land Rover. The company aims to achieve carbon neutrality by 2040, reinforcing its commitment to sustainable global growth.

Tata Motors

• Leading India’s EV space
• Capex-intensive JLR EV roadmap
• Targeting carbon neutrality by 2040

Mahindra & Mahindra plans to launch five electric vehicles under its Born Electric platform by 2027. The company is expanding tractor and SUV production capacities to meet growing demand, while also focusing on localising EV battery manufacturing to strengthen its supply chain.

Mahindra & Mahindra

• Launching 5 EVs under Born Electric by 2027
• Expanding tractor & SUV capacities
• Localising EV battery production

Peer Valuation and Auto Sector Benchmarking (FY25) 

Tata Motors stands as the most undervalued auto stock on valuation multiples.

Conclusion: Tata Motors or Mahindra Which Stock to Buy? 

Among peers, Tata Motors is the most undervalued auto stock based on key valuation multiples, offering an attractive entry point.

Conclusion: Tata Motors presents a high-growth, undervalued opportunity for investors focused on global diversification and electric vehicle expansion. In contrast, Mahindra & Mahindra is a steady compounder with strong cash flows and a dominant presence in domestic rural markets.

• Tata Motors offers a high-growth, undervalued opportunity for investors seeking global diversification and EV momentum.
• Mahindra is a consistent compounder with a domestic focus, strong cash flows, and a resilient rural backbone.

FAQs

Q1. Which company posted higher profits in FY25 - Tata Motors or Mahindra?
Tata Motors, with ₹28,139 Cr net profit, outpaced Mahindra’s ₹14,073 Cr.

Q2. Is Tata Motors stock undervalued compared to Mahindra?
Yes. Tata Motors trades at a P/E of 9.28 vs Mahindra’s 29.1, indicating better valuation.

Q3. What’s driving Mahindra’s stock in FY25?
Strong SUV demand, market-leading tractor business, and near-zero debt position.

Q4. How much of Tata Motors’ revenue comes from JLR?
Around 71% of total revenue.

Q5. Which stock is better for long-term investors?
Tata for value seekers, Mahindra for stability-focused investors.

Q6. What are their EV plans for India?
Tata leads with multiple models and JLR’s EV roadmap. Mahindra plans 5 EVs under Born Electric by 2027.

Q7. What’s the promoter holding difference?
Tata: 42.58%, Mahindra: 18.45% (professionally run).

Q8. What do analysts recommend?
Buy on Tata Motors for growth. Hold to Add on Mahindra for steady performance.