October 14 marked the record date for the separation of Tata Motors’ passenger and commercial vehicle operations. Shareholders who held shares before October 14 are entitled to one share of Tata Motors Commercial Vehicles Ltd (TMLCV) for every share held. TMLCV will list separately on the National Stock Exchange and BSE once regulatory approvals are completed, with shares credited to demat accounts within 30–45 days.
The parent company now includes passenger vehicles, electric vehicles, and Jaguar Land Rover operations. All existing futures and options contracts expiring in October, November, and December were settled on Monday and will resume with revised lot sizes.
Also read | Did Tata Motors shares really crash 40%? What the demerger plunge actually means
Analysts weigh in
Brokerages said the split enables clearer valuation of the company’s distinct businesses. Nomura valued the passenger and commercial units almost equally—Rs 367 for Tata Motors Passenger Vehicles (TMPV) and Rs 365 for TMLCV—while warning of “technical risk for the share price” as the stock trades ex-demerger. The brokerage noted that index weight adjustments could trigger near-term volatility.
SBI Securities projected TMPV to trade between Rs 285–384 post-demerger, with potential upside tied to JLR’s volume recovery and profitability. For TMLCV, the brokerage forecast a range of Rs 320–470, noting the planned €3.8 billion acquisition of Iveco Group NV’s commercial vehicle operations.
YES Securities described the separation as a “value unlocking opportunity,” noting that pure-play passenger and commercial vehicle businesses allow investors to target distinct auto cycles. Bonanza Research analyst Khushi Mistry said the demerger “will lead to sharper business focus for both entities.”Also read | Nomura values Tata Motors passenger and commercial arms nearly equal, flags near-term volatility post demerger
Outlook for each unit
TMLCV enters the market as India’s largest commercial vehicle maker, with a 37.1% market share and a 12.2% EBITDA margin in Q1FY26, despite revenue declines. The unit is expected to benefit from a planned €3.8 billion acquisition of Iveco Group NV’s commercial vehicle operations, which is projected to triple combined revenues and expand exposure to electric and alternative fuel powertrains.
TMPV, which derives 87% of revenue from Jaguar Land Rover, is projected to grow 8–10% in H2FY26, supported by new launches, strong SUV positioning, and rising EV and CNG demand, which constitute 45% of passenger vehicle revenue. Analysts noted that JLR’s phased manufacturing restart after a September cyberattack will influence sentiment, though early reports suggest retail-level impact was limited.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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