Tata Motors demerger: record date, listing of new biz, Q2 preview & all key things to know
Tata Motors shares: Monday, October 13 will mark an important trading day for the shareholders of the Tata Group's automobile entity it will be last day when it trades as a consolidated entity.
- Oct 13, 2025,
- Updated Oct 13, 2025 9:03 AM IST
Tata Motors shares demerger: Monday, October 13 will mark an important trading day for the shareholders of the Tata Group's automobile entity- Tata Motors- as it will be the last day when it trades as a consolidated entity, comprising both passenger vehicle and commercial vehicle business. The stock will trade ex-date from tomorrow and Monday is the last day to buy the consolidated stock.
From Tuesday, October 14, shares of Tata Motors shall be spun-off in two standalone entities- TML Commercial Vehicles (TMLCV) and Tata Motors Passenger Vehicles. Shareholders of Tata Motors will get shares of both the entities in 1:1 ratio. With this, the major overhang of demerger will also finally come into effect. All the existing F&O contracts of Tata Motors shall expire today itself. New contracts with revised lot size shall be issued from Tuesday, October 14 onwards.
Tata Group-backed Tata Motors is preparing to spin-off its operations into two distinct companies- one with passenger vehicle business and the demerged entity will hold the commercial vehicle business. The demerger scheme became effective on October 1, 2025, with the appointed date set for July 1, 2025, according to a regulatory filing by the company.
Tata Motors Ltd, the passenger vehicle arm, will not only own the passenger vehicle business but also stake in electrical business (EVs) and Jaguar Land Rover (JRL) under its umbrella, with the entity being renamed Tata Motors Passenger Vehicles Limited. TML Commercial Vehicles shall be renamed as Tata Motors Limited. Shares of both entities will have a face value of Rs 2 each.
On the record date, the share price of TML shall be adjusted to take into account the demerger of the commercial vehicles business, through a price discovery mechanism of the stock exchanges. Upon finalization of the list of eligible shareholders of TML, the shares in TMLCV shall be allotted and thereafter, such shares shall be listed on the stock exchanges- BSE and NSE.
"During the period from the date of allotment of shares by TMLCV upto the date of listing on BSE and NSE thereof, the shares of TMLCV shall not be available for trading on the stock exchanges. The process of obtaining listing and trading permission generally takes 45-60 days from the date of filling necessary applications with Stock Exchanges," said the company in exchange filing.
Tata Motors is also transferring Rs 2,300 crore worth of non-convertible debentures (NCDs) to TMLCV, with eligible holders already identified. Tata Motors settled at Rs 679.05 on Friday, falling marginally, with a total market capitalization of Rs 2.50 lakh crore. The stock is down 28 per cent from its 52-week high at Rs 943.95, hit a year ago.
Analyst sentiment remains cautious on Tata Motors' demerger and Q2 results. HDFC Securities has a 'reduce' rating on Tata Motors with a target price of Rs 706. It is expecting nearly a double digit fall in revenue with margin contraction and up to 50 per cent fall in the bottomline for the Tata Motors in September 2025 quarter. However, these expectations are for a consolidated entity.
"JLR Ebit margin declined QoQ to -2.2 per cent, mainly due to negative operating leverage as the company had shut down production for almost a month due to a cyberattack. Commercial Vehicle Ebitda margin to improve to 12.5 per cent on operating leverage as volumes grew 11 per cent QoQ. Passenger Vehicle Ebitda margin to improve 150 bps QoQ to 5.5 per cent on operating leverage," it said.
Brokerage firm Investec is pencilling JLR revenues to decline by -18 per cent YoY as 24 per cent YoY decline in volumes (owing to production shutdown) will be offset by ASP increase due to richer mix and FX translation gains. The PV revenues are expected to grow by 12 per cent YoY and CV revenues are expected to grow at 6 per cent YoY. It has a 'hold' rating with a target price of Rs 765.
"JLR Ebit margins may decline 360 bps QoQ to 1.5 per cent led by negative operating leverage. PV Ebitda margins to expand by 360 bps QoQ to 7.6 per cent led by operating leverage benefits. CV Ebitda margins may expand by 60 bps QoQ to 12.8 per cent largely driven by operating leverage benefits and continued pricing discipline," Investec added.
Bookings have risen by 25-30 per cent YoY in the domestic passenger vehicle, outpacing industry growth of 20 per cent. After the subdued H1FY26, the company expects domestic CV segment volume growth to accelerate to double-digit in H2FY26E, said Kotak Securities. Domestic commercial vehicle demand acceleration is expected in SCV and I&LCV segments, it said.
"It expects limited recovery in the hatchback segment. Near-term headwinds persist for JLR, immediate focus on restarting production. US volumes remain resilient, China is stable at lower levels, and Europe is showing early recovery signs for JRL. We expect earnings per share to decline by 20.2 per cent in FY26E to Rs 48.8," it added with a 'sell' rating and a target price of Rs 650.
Tata Motors shares demerger: Monday, October 13 will mark an important trading day for the shareholders of the Tata Group's automobile entity- Tata Motors- as it will be the last day when it trades as a consolidated entity, comprising both passenger vehicle and commercial vehicle business. The stock will trade ex-date from tomorrow and Monday is the last day to buy the consolidated stock.
From Tuesday, October 14, shares of Tata Motors shall be spun-off in two standalone entities- TML Commercial Vehicles (TMLCV) and Tata Motors Passenger Vehicles. Shareholders of Tata Motors will get shares of both the entities in 1:1 ratio. With this, the major overhang of demerger will also finally come into effect. All the existing F&O contracts of Tata Motors shall expire today itself. New contracts with revised lot size shall be issued from Tuesday, October 14 onwards.
Tata Group-backed Tata Motors is preparing to spin-off its operations into two distinct companies- one with passenger vehicle business and the demerged entity will hold the commercial vehicle business. The demerger scheme became effective on October 1, 2025, with the appointed date set for July 1, 2025, according to a regulatory filing by the company.
Tata Motors Ltd, the passenger vehicle arm, will not only own the passenger vehicle business but also stake in electrical business (EVs) and Jaguar Land Rover (JRL) under its umbrella, with the entity being renamed Tata Motors Passenger Vehicles Limited. TML Commercial Vehicles shall be renamed as Tata Motors Limited. Shares of both entities will have a face value of Rs 2 each.
On the record date, the share price of TML shall be adjusted to take into account the demerger of the commercial vehicles business, through a price discovery mechanism of the stock exchanges. Upon finalization of the list of eligible shareholders of TML, the shares in TMLCV shall be allotted and thereafter, such shares shall be listed on the stock exchanges- BSE and NSE.
"During the period from the date of allotment of shares by TMLCV upto the date of listing on BSE and NSE thereof, the shares of TMLCV shall not be available for trading on the stock exchanges. The process of obtaining listing and trading permission generally takes 45-60 days from the date of filling necessary applications with Stock Exchanges," said the company in exchange filing.
Tata Motors is also transferring Rs 2,300 crore worth of non-convertible debentures (NCDs) to TMLCV, with eligible holders already identified. Tata Motors settled at Rs 679.05 on Friday, falling marginally, with a total market capitalization of Rs 2.50 lakh crore. The stock is down 28 per cent from its 52-week high at Rs 943.95, hit a year ago.
Analyst sentiment remains cautious on Tata Motors' demerger and Q2 results. HDFC Securities has a 'reduce' rating on Tata Motors with a target price of Rs 706. It is expecting nearly a double digit fall in revenue with margin contraction and up to 50 per cent fall in the bottomline for the Tata Motors in September 2025 quarter. However, these expectations are for a consolidated entity.
"JLR Ebit margin declined QoQ to -2.2 per cent, mainly due to negative operating leverage as the company had shut down production for almost a month due to a cyberattack. Commercial Vehicle Ebitda margin to improve to 12.5 per cent on operating leverage as volumes grew 11 per cent QoQ. Passenger Vehicle Ebitda margin to improve 150 bps QoQ to 5.5 per cent on operating leverage," it said.
Brokerage firm Investec is pencilling JLR revenues to decline by -18 per cent YoY as 24 per cent YoY decline in volumes (owing to production shutdown) will be offset by ASP increase due to richer mix and FX translation gains. The PV revenues are expected to grow by 12 per cent YoY and CV revenues are expected to grow at 6 per cent YoY. It has a 'hold' rating with a target price of Rs 765.
"JLR Ebit margins may decline 360 bps QoQ to 1.5 per cent led by negative operating leverage. PV Ebitda margins to expand by 360 bps QoQ to 7.6 per cent led by operating leverage benefits. CV Ebitda margins may expand by 60 bps QoQ to 12.8 per cent largely driven by operating leverage benefits and continued pricing discipline," Investec added.
Bookings have risen by 25-30 per cent YoY in the domestic passenger vehicle, outpacing industry growth of 20 per cent. After the subdued H1FY26, the company expects domestic CV segment volume growth to accelerate to double-digit in H2FY26E, said Kotak Securities. Domestic commercial vehicle demand acceleration is expected in SCV and I&LCV segments, it said.
"It expects limited recovery in the hatchback segment. Near-term headwinds persist for JLR, immediate focus on restarting production. US volumes remain resilient, China is stable at lower levels, and Europe is showing early recovery signs for JRL. We expect earnings per share to decline by 20.2 per cent in FY26E to Rs 48.8," it added with a 'sell' rating and a target price of Rs 650.