Shares of Tata Motors Ltd experienced a significant increase, emerging as one of the top gainers in the Nifty 50 index on Friday. This surge was fueled by investor optimism following the company’s recent demerger, its sales performance in Q2 FY26, and positive developments within its key subsidiaries. The stock rose nearly 3 percent, reaching an intraday high of ₹739.70, climbing approximately 13 percent from its low of ₹655.30 observed on September 25, 2025. As of 11 AM on Friday, the shares were trading flat at ₹719.
On October 1, Tata Motors officially commenced its long-anticipated demerger, separating its commercial vehicles (CV) and passenger vehicle operations, including electric vehicles (EVs) like Jaguar Land Rover, into distinct publicly-listed entities: TML Commercial Vehicles Ltd and Tata Motors Passenger Vehicles Ltd. Under the terms of the composite scheme of arrangement, shareholders will be entitled to receive one share of the new CV entity (TMLCV) for each existing share held, according to a 1:1 entitlement ratio, with the record date set for October 14, 2025.
In terms of sales performance, Tata Motors reported a robust 10 percent year-on-year growth in passenger vehicle sales for Q2 FY26, achieving a total of 144,397 units sold, compared to 130,753 units during the same quarter the previous year. Meanwhile, the company’s commercial vehicle sales, both domestically and internationally, totaled 94,681 units for Q2 FY26, an increase from 84,281 units in Q2 FY25.
Additionally, Tata Motors’ arm Jaguar Land Rover (JLR) faced significant challenges following a cyberattack in early September that halted production and disrupted supply chains. The company announced plans to partially resume production in the coming days. Reports indicate that JLR is securing £3.5 billion ($4.7 billion) in loan commitments to manage the ongoing repercussions. This follows a £1.5 billion loan guarantee from the UK government, while JLR is also looking to raise an additional £2 billion from banks to stabilize its finances during this setback.
The article was published on October 3, 2025.
