February 2, Bangalore (Reuters) - The most valuable automaker in India, Tata Motors, shocked analysts by reporting a more than two-fold increase in third-quarter earnings on Friday. The company attributed the growth to strong sales at its British luxury car division, Jaguar Land Rover (JLR).

Compared to a year earlier, the combined net profit for the three months ending December 31 increased to 70.25 billion rupees ($847.7 million). According to LSEG data, analysts projected a profit of 44.51 billion rupees on average.

Approximately two thirds of Tata Motors' revenue comes from their more expensive and profit-boosting JLR vehicles. The market category serves a wealthy, international clientele that is mainly untouched by rising prices.

Sales of JLR increased by 27% between October and December, the company reported earlier this month.

In addition to exceeding analysts' forecasts by 25% to reach 1.11 trillion rupees in total quarterly revenue, this helped Tata Motors increase its profits before interest, taxes, depreciation, and amortisation (EBITDA) margins to 14.3% from 11.1% in the previous year.

According to its monthly sales figures, the company's domestic market was nevertheless plagued by weak demand, with overall sales volumes increasing by only 3% for the quarter.

The shares of Tata Motors surged earlier this week, enabling the business to overtake Maruti Suzuki and take the top spot as the most valuable automaker in India. Tata Motors leads in revenue, even though Maruti sells more automobiles.

Maruti exceeded its third-quarter profit projections on Wednesday. Meanwhile, Mahindra and Mahindra, a smaller rival, is scheduled to release its results later this month.