Tata Motors Share Price

Tata Motors Share Price: A New Chapter Begins

Tata Motors just kicked off a whole new era. Starting October 1, 2025, the company split into two separate businesses.

Tata Motors Passenger Vehicles Ltd (TMPV) — covering passenger vehicles, EVs, and Jaguar Land Rover (JLR).

Tata Motors Commercial Vehicles Ltd (TMLCV) — focused exclusively on trucks, buses, and commercial fleet business.

And here’s the part shareholders care about: for every Tata Motors share you owned, you got one share in the new commercial vehicles company. Simple 1:1 swap.

Why the Demerger Matters to the Stock Price (Tata Motors Share Price)

• Unlocking Value Through Focus

The whole point of the demerger was to unlock value. By splitting off the fast–growing but cash–hungry EV and JLR business from the more stable, cash-rich commercial vehicle side, the company made it easier for investors to see what each part is really worth.

• Initial Market Reaction

The commercial vehicle division hit the market on November 12, 2025, and started strong with a solid premium. On the other hand, TMPV—the piece with passenger vehicles and JLR—has been all over the place, mostly because so much depends on how JLR performs.

Financial Performance: Strengths and Warning Signs

Q2 FY26: A Profit Surge (But Mostly on Paper)

TMPV just posted a headline–grabbing net profit of ₹76,248 crore for Q2 FY26. Sounds impressive, right? Well, most of that comes from a notional gain tied to the CV demerger, not from the company’s actual day-to-day business.

If you look at the real story, revenue actually dropped about 13.5% to ₹72,349 crore. That’s mostly because JLR’s output took a big hit after a cyberattack.

JLR Under Pressure

JLR has slashed its EBIT margin guidance for FY 2026 down to 0–2%. Earlier, they were aiming for 5–7%. What happened? That cyberattack in September shut down production for weeks and delivered a one-off financial blow.

And it doesn’t stop there. JLR is also dealing with weak demand in China and heavy competition, which just piles on more pressure for their margins.

Tata Motors Broader Financials

Here’s what stood out in the Q4 FY25 results:

• Pre-tax profit hit £875 million for the quarter.
• The company’s aiming to invest £18 billion over the next five years, using money it generates from its own operations.
• Looking at the commercial side (TMLCV), FY25 brought in revenues of ₹75,055 crore with an EBITDA margin around 11.8%. That’s a solid foundation to grow on.

Strategic Moves: Growth but Risk Too

Iveco Acquisition: Tata’s picking up Iveco’s commercial vehicle business for €3.8 billion. This move boosts Tata’s global presence and brings in fresh tech for its commercial vehicles.

EV Ambitions: Tata’s passenger division is betting big on electric vehicles. If JLR pulls off the switch to electric luxury cars, this could really pay off down the road.

Capital Allocation: Splitting into two companies lets management focus their money where it matters most—using commercial vehicles for steady cash, and putting more into passenger vehicles and JLR to push growth and new ideas.

Key Risks Investors Should Watch

Too Much Riding on JLR

TMPV leans hard on JLR. Last year, almost 87% of TMPV’s revenue came straight from JLR, so any wild swings in JLR’s margins hit TMPV right where it hurts.

Cyberattack Fallout

That recent cyberattack? It’s not just a bump in the road. Recovery’s slow, and they’ve already had to lower margin guidance because of it.

Global Demand Risk

JLR does a lot of business in Europe and China. If demand drops in either place, TMPV feels it in a big way.

Integration Risk

The Iveco deal is huge, but pulling it all together—culture, rules, day-to-day operations—it’s messy. If they can’t make it work, those promised synergies go out the window.

High CapEx

TMPV needs to pour a lot of cash into EV growth and new JLR models. If they don’t keep a tight grip on spending, cash flow takes a hit.

Why Some Investors Are Still Bullish

The demerger makes it simple: now you can put your money into either “pure commercial vehicles” or “pure passenger vehicles + JLR + EVs.” No more mixing apples and oranges.

If JLR bounces back and those margins finally improve, TMPV stands to gain the most. There’s real upside there. The Iveco deal could really push the commercial vehicle business to a new level globally.

It’s a big move. And let’s not ignore the long-term EV trend. Especially for premium EVs, this shift favors owning TMPV.

My Outlook: Balanced but With a Tilt

Short to medium term, I see risk around TMPV. JLR’s margins are still shaky, and the demerger stirs up plenty of volatility. Investors need to stay on their toes and watch how things play out over the next couple of quarters.

Looking further out, there’s a lot to like—if Tata nails its EV and JLR strategy, and if the Iveco acquisition really delivers for the commercial vehicle side.

Portfolio Strategy For long-term value seekers: Don’t rush in. Think about building your position in TMPV (or even both businesses) over time, rather than betting big right now.

If you’re after growth: TMPV could be appealing, especially if you believe in JLR’s turnaround and Tata’s EV push.

If you hate risk: The commercial vehicle arm (TMLCV) looks steadier and isn’t as wrapped up in JLR’s drama.

Final Thoughts

Tata Motors’ demerger is a big moment. Investors finally get to pick their spots—commercial vehicles, EVs, luxury cars—without getting tangled up in the whole package. But there’s a catch. The new structure brings its own risks, and TMPV is now more exposed to how JLR performs. You can expect some bumps in the near term.

Still, if Tata follows through—especially with the Iveco play and a clear EV strategy—this could set the stage for something special over the long run.

Bottom line: This isn’t a simple growth story anymore. It’s a more complicated value play, and how it all pans out depends on how well Tata executes, what happens with global auto demand, and how the tech race shakes out.