As Tata Motors demerges, here's how the two listed companies now stand
Tata Motors' long-awaited split creates two clear bets for investors: a global luxury play via TMPV and a domestic mobility story through the CV arm
 "As Tata Motors demerges, here's how the two listed companies now stand")
Tata Motors’ long-planned breakup has formally taken effect, creating two separately listed companies with distinct market exposures. The passenger-focused company Tata Motors Passenger Vehicles Ltd (TMPV) now comprises the domestic passenger vehicle (PV) business, the electric-vehicle division and Jaguar Land Rover (JLR). Meanwhile, the commercial-vehicle (CV) undertaking has been carved out into a separately listed company that has assumed the historic name Tata Motors Ltd ahead of its market debut.
The National Company Law Tribunal-approved scheme became effective on October 1 and the company fixed October 14 as the record date. Shareholders received one share of the CV company for every share held in the erstwhile Tata Motors. Following the split, the existing listed entity was renamed TMPV on October 13, while TML Commercial Vehicles Ltd adopted the name Tata Motors Ltd on October 29, according to exchange disclosures reported by Business Standard.
Two portfolios, two geographies for Tata Motors
TMPV’s revenue profile is massively dependent on JLR. Brokerage analysis reported by Mint pegged JLR’s share of TMPV revenue at 87 per cent in FY25, with the India PV/EV operations contributing the balance of the revenues. JLR reported £29 billion revenue in FY25 and £2.5 billion profit before tax and exceptional items, the highest in a decade, with an 8.5 per cent adjusted EBIT margin. JLR ended FY25 net cash positive, the company had announced in its annual report.
Its FY25 retail sales were 428,854 units (including the China JV), with strength in North America and weaker conditions in China, according to JLR’s annual report and results statements.
Meanwhile, Tata Motors Ltd (CV) remains India-heavy. In October 2025, it sold 37,530 CV units in total, of which 35,108 were in the domestic market and 2,422 were international, a figure indicative of primarily domestic orientation with a smaller export base, according to a PTI report.
Market focus: domestic vs foreign exposure
The demerger separates two very different risk and opportunity profiles. With JLR accounting for a major share of revenue, TMPV’s earnings are tied to global demand in the UK, Europe, North America and China. FY25 narratives from JLR highlighted higher wholesale growth in North America and Europe, with China a drag.
And FY26 started with additional external shocks, as the US tariff regime on foreign-built vehicles temporarily halted JLR’s US exports in Q1 FY26, and a cyber incident in August disrupted production and sales into Q2 FY26. JLR has begun a phased restart and has noted mitigating steps, including a UK-US trade quota relief announced in May 2025.
Meanwhile, the domestic-tilted CV company’s sales track Indian freight, construction, mining, passenger mobility, and interest-rate cycles. Industry data show H1 FY26 domestic CV volumes up around 4 per cent Y-o-Y, helped by festive demand and lower borrowing costs. Yet, exports are meaningful but smaller and can fluctuate with demand in West Asia, Africa, and South Asia.
Financial baselines at the point of split
At a consolidated level (pre-demerger), Tata Motors reported ₹4.40 trillion revenue in FY25, ₹57,600 crore Ebitda, and ₹34,300 crore profit before tax (before exceptional items), turning net auto cash positive with ₹1,000 crore net cash. Management attributed improvements to lower D&A at JLR, better CV profitability and lower interest costs.
CV-specific disclosures of FY25 indicate an EBITDA margin nearing 11.8 per cent for the year. In figures, the revenues stood at ₹75,053 crore and profit before tax of ₹6,649 crore.
Strategy signals since approval
TMPV has guided continued India PV/EV investment with plans to invest up to ₹35,000 crore over five years in EVs and cleaner powertrains across the India PV portfolio, Reuters reported. On the CV side, Tata’s $4.5 billion all-cash agreement to acquire Iveco’s truck and bus business (ex-defence) in mid-2025, aiming to expand revenue beyond India and deepen electrification capabilities, is expected to close by April 2026, subject to approvals.
Bottom line: different risks, clearer choices
The reorganisation has left investors with two pure-play exposures:
TMPV: a luxury-heavy global auto portfolio via JLR, plus India PV/EV whose earnings are influenced by UK/Europe/US/China demand, trade policies, and model cycles. FY25 profitability was strong, but FY26 has faced US tariff changes and a cyber-attack-related production interruption.
Tata Motors Ltd (CV): a business tied primarily to India’s domestic economic cycle, with exports as an additional lever, and near-term growth plans show steady domestic demand and improving monthlies.