Tata Motors shares fell for the fourth consecutive session on Wednesday, slipping 1.58% to Rs. 687.30 on the BSE. The stock has declined over 4% in four days as investors booked profits ahead of the upcoming demerger record date next week.
From October 1, 2025, the Tata Motors demerger is going to divide the company into two: TML Commercial Vehicles Ltd (TMLCV) for the commercial vehicle business and Tata Motors Passenger Vehicles Ltd for the passenger vehicle arm that includes JLR.
The record date validating the shareholder's right is on October 14, 2025. Investors will receive one TMLCV share for each Tata Motors share (1:1).
However, October 10 is the cutoff date for the transfer of Rs. 2,300 crore in NCDs to TMLCV.. Both companies will be listed separately on the BSE and the NSE post-regulatory approvals.
Post demerger, investors will have stakes in both Tata Motors Passenger Vehicles Ltd. and TML Commercial Vehicles Ltd.
The overall value of the holdings is expected to remain the same on the record date; the share tags of both the units will change to display their corresponding valuations after they get listed.
Brokerage Samco Securities noted that investors need not worry about losing value during the transition.
However, they should monitor official announcements, avoid creating new F&O or MTF positions until restrictions are lifted, and reassess their portfolios once the new shares are credited.
Adding pressure to the stock, Tata Motors reported weak Jaguar Land Rover (JLR) sales for the second quarter of FY26.
JLR’s wholesales fell 24.2% year-on-year to 66,165 units, while retail sales dropped 17.1% to 85,495 units. The company attributed the decline to a cyber incident, the phase-out of older Jaguar models, and higher US tariffs.
Tata Motors’ stock has faced rejection near the Rs. 735 resistance level and formed a shooting star candle on the daily chart, often a sign of trend reversal. A close below Rs. 685 could accelerate downside momentum toward Rs. 640-Rs. 608.
Despite near-term pressure, analysts remain largely positive. As per Trendlyne, out of 27 brokerages, the consensus rating on Tata Motors is “Hold”, with an average target price of Rs. 766.63, implying an upside of nearly 10%.
Emkay Global has issued a “Buy” call with a target of Rs. 750.
Also Read: Tata Motors Demerger: Split Into Passenger and Commercial Vehicle Units Effective October 1
While the ongoing correction reflects investor caution ahead of the record date and weak JLR performance, the demerger is expected to unlock operational efficiency and value creation across Tata Motors’ business segments.
Long-term investors may consider holding their stakes to benefit from the listings of two focused and potentially stronger companies after the demerger.