Tata Motors fixed Tuesday, October 14, as the record date for determining shareholders eligible to receive shares in its demerged commercial vehicle business.
The company said the equity shares to be issued by TML Commercial Vehicles Ltd (TMLCV) will be listed on both the BSE and the National Stock Exchange of India (NSE).
In August last year, Tata Motors’ board approved the demerger of its commercial and passenger vehicle divisions into two separate listed entities to sharpen business focus and capitalise on future growth opportunities.
Following the demerger, the passenger vehicle arm will be renamed Tata Motors Passenger Vehicles Ltd (TMPVL), while the commercial vehicles entity will be listed in November as Tata Motors Ltd (TML).
Impact on fundamentals
The 1:1 demerger will create two focused entities — Tata Motors Commercial Vehicles (TMLCV) and Tata Motors Passenger Vehicles (TMPV).
According to Khushi Mistry, Research Analyst at Bonanza, TMLCV will debut as India’s largest commercial vehicle manufacturer with a 37.1 percent market share. In the first quarter of FY26, the commercial vehicle segment maintained a healthy double-digit EBITDA margin of 12.2 percent despite a dip in revenue, aided by operational efficiencies.
The company is also expected to benefit from the €3.8 billion acquisition of Iveco, positioning it as the world’s fourth-largest truck manufacturer in the above 6-tonne category. The domestic commercial vehicle industry is projected to grow 3–5 percent in FY26, supported by infrastructure and e-commerce demand.
TMPV will include the passenger vehicle, electric vehicle (EV), and Jaguar Land Rover operations. The domestic passenger vehicle segment is estimated to grow 8–10 percent in the second half of FY26, driven by new model launches, strong SUV demand, and rising EV and CNG penetration, which together contribute around 45 percent of the PV segment’s revenue.
Technical Analysis
Drumil Vithlani, Technical Analyst at Bonanza, said the Tata Motors stock has corrected 4.89 percent this week, reflecting selling pressure ahead of the demerger.
"The stock is currently trading below the 20-week EMA at Rs 688.46, which is acting as a resistance. Momentum indicators suggest a phase of consolidation or mild weakness rather than a full reversal," he said.
Vithlani advised existing investors to hold their positions and avoid fresh entries until clarity emerges after the demerger event.
"If the stock sustains above key support at around Rs 669 and closes above the Rs 688–690 EMA zone, a short-term recovery towards Rs 720 and Rs 736–740 could be expected," he added.
Key levels
Immediate support: Rs 669.40
Accumulation zone: Rs 660–650 (seen in June–July)
Resistance: Rs 688–690 (20-week EMA cluster)
Next resistance: Rs 720 (recent rejection level)
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