Tata Motors shares extended their decline for the fourth consecutive session on Wednesday, ahead of the company’s demerger record date next week. The stock traded lower as investors digested recent corporate actions and quarterly sales updates.
Market Performance: Share Price Movement
On Wednesday, Tata Motors share price fell 1.38% to ₹688.50 per share on BSE, marking a cumulative drop of over 4% in the past four sessions.
Key performance highlights:
- One-Month Change: Down 4%
- Six-Month Change: Up 17%
- Year-to-Date (YTD) Performance: Down 8%
- Two-Year Gain: Up 11%
- Five-Year Gain: Up 390%
This movement reflects market adjustments ahead of the corporate restructuring and its implications for shareholders.
Main News: Demerger Details
The demerger of Tata Motors became effective on October 1, 2025. Under the approved scheme of arrangement:
- The Commercial Vehicles (CV) business has been spun off into a newly formed entity: TML Commercial Vehicles Limited (TMLCV).
- The Passenger Vehicles (PV) business continues under the existing company, which will be renamed Tata Motors Passenger Vehicles Limited.
The record date for the demerger is set for October 14, 2025, to ascertain shareholder eligibility for the corporate action.
Share Entitlement Ratio:
-
1:1, meaning shareholders will receive one fully paid-up share of ₹2 in TMLCV for every share held in Tata Motors.
JLR Sales Impact
Tata Motors reported a sharp decline in second-quarter sales for its UK-based subsidiary Jaguar Land Rover (JLR), impacted by several operational factors:
- Cyber incident affecting production
- Planned wind down of legacy Jaguar models ahead of new launches
- Incremental US tariffs impacting exports
Q2 FY26 JLR Volumes:
- Wholesale Sales: 66,165 units (down 24.2% YoY)
- Retail Sales: 85,495 units (down 17.1% YoY)
- High-Margin Models Mix: Range Rover, Range Rover Sport, and Defender accounted for 76.7% of total wholesale volumes, slightly lower than the prior quarter’s 77.2%, but up from 67.0% YoY.
The sales mix indicates prioritisation of JLR’s most profitable models amid operational challenges.
Summary: Key Takeaways
- Tata Motors Share Price: ₹688.50, down 1.38%
- Demerger Record Date: October 14, 2025
- Demerger Ratio: 1:1 for TMLCV shares
- JLR Q2 FY26 Wholesale Sales: 66,165 units, down 24.2% YoY
- JLR Retail Sales: 85,495 units, down 17.1% YoY
- High-Margin Model Mix: 76.7% of total wholesale volumes
The ongoing correction in Tata Motors’ stock price reflects the market’s response to the demerger and Q2 performance, while the company continues to focus on optimizing its commercial and passenger vehicle segments.
