Tata Motors Demerger: Last Chance To Buy Before Record Date; Key Points For Investors
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Shares of Tata Motors Ltd. fell up to 2% on Oct 13, marking the final day the stock traded as a consolidated entity ahead of its demerger
Tata Motors Demerger Record Date
Tata Motors Share Price: Shares of Tata Motors Ltd. slipped as much as 2% on Monday, October 13, as it marked the last day the stock traded as a consolidated entity before its demerger. The record date for the demerger of Tata Motors’ Commercial Vehicles (CV) business has been set for Tuesday, October 14. Shareholders holding Tata Motors shares in their demat accounts by Monday’s close will be eligible to receive one share of the demerged entity for every share they currently own. The shares carry a face value of Rs 2 each.
The demerger scheme became effective on October 1, 2025. On the record date, the share price of Tata Motors will be adjusted for the exclusion of the CV business through a price discovery mechanism on stock exchanges. Post-demerger, the new entity will be named Tata Motors Ltd. Commercial Vehicles, while the existing entity will trade as Tata Motors Passenger Vehicles Ltd. (TMPVL). During the allotment-to-listing period, shares of the demerged entity will not be available for trading, a process that typically takes 45-60 days, according to the company’s exchange filing last week.
The demerger plan, first announced in 2023, has received all regulatory approvals. Tata Motors, however, continues to grapple with challenges at its luxury car unit, Jaguar Land Rover (JLR), following a cyberattack that could cost over £2 billion—exceeding JLR’s entire FY25 profit.
Analysts remain cautious on the demerger and Q2 results. HDFC Securities has a ‘reduce’ rating with a target price of Rs 706, expecting nearly double-digit revenue decline, margin contraction, and up to a 50% fall in net profit for the consolidated entity in Q2FY26. It noted that JLR’s EBIT margin declined quarter-on-quarter (QoQ) to -2.2% due to negative operating leverage from a month-long production shutdown, while CV EBITDA margins are expected to improve to 12.5% and passenger vehicle margins to 5.5%, aided by operating leverage.
Investec projects JLR revenues to fall 18% YoY due to a 24% decline in volumes, partially offset by higher average selling prices (ASP) and FX gains. PV revenues may grow 12% YoY, and CV revenues 6% YoY. The brokerage maintains a ‘hold’ rating with a target price of Rs 765, forecasting JLR EBIT margins to drop 360 bps QoQ to 1.5%, PV EBITDA margins to expand 360 bps QoQ to 7.6%, and CV EBITDA margins to rise 60 bps QoQ to 12.8% due to operating leverage and pricing discipline.
Kotak Securities highlighted that domestic passenger vehicle bookings have risen 25-30% YoY, outpacing the industry’s 20% growth. After a subdued H1FY26, domestic CV volumes are expected to accelerate to double-digit growth in H2FY26, particularly in the SCV and I&LCV segments. Hatchback segment recovery is expected to be limited. Near-term headwinds persist for JLR, with a focus on restarting production. US volumes remain resilient, China is stable at lower levels, and Europe shows early signs of recovery. Kotak projects FY26 earnings per share to decline 20.2% to Rs 48.8, maintaining a ‘sell’ rating with a target price of Rs 650.
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Aparna Deb is a Subeditor and writes for the business vertical of Business.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of Business.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
October 13, 2025, 12:23 IST
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