Tata Motors Demerger: Auto Maker Announces Date For Historic Demerger In Q4 Results 2025 - Check Details

Tata Motors Demerger: Tata Motors has made a significant announcement regarding its upcoming demerger, alongside its fourth-quarter FY25 financial results.

The company revealed that it will split into two distinct entities, marking a key moment in its ongoing transformation.

Tata Motors Demerger Date

The demerger will be implemented through a National Company Law Tribunal (NCLT) scheme of arrangement, with the appointed date set for July 1, 2025 and the effective date expected to be October 1, 2025, according to exchange filings.

This means that from October 2025, Tata Motors will operate as two separate listed companies: one focused on the Commercial Vehicles (CV) business and the other on the Passenger Vehicles (PV), Electric Vehicles (EV), and Jaguar Land Rover (JLR) segments.

The proposal for the demerger was overwhelmingly approved by shareholders during a meeting on May 6, 2025, with 99.9% of the votes in favour. This decision follows a period of operational separation that began in 2022 when Tata Motors' passenger vehicle and electric vehicle businesses were already functioning independently.

Also Read: Tata Motors Dividend 2025: TaMo Declares 300% Dividend In Q4 Results

Why Tata Motors Is Demerging?

The new demerger is a logical next step, designed to provide greater operational agility for each business unit.

The move to separate the Commercial Vehicles and Passenger Vehicles businesses comes as Tata Motors recognizes the limited synergies between these two segments, while there is considerable potential for collaboration within the Passenger Vehicles, EV, and JLR sectors—especially in the areas of electric vehicles, autonomous driving technologies, and vehicle software development.

The demerger will allow each new company to pursue its strategic objectives more effectively, driving future growth and profitability. Shareholders will continue to hold identical shares in both companies after the split, ensuring they remain invested in the future of each segment.

Tata Motors Q4 Results 2025

This strategic move comes alongside Tata Motors’ Q4 FY25 financial results, where the company reported a slight increase in revenue but a significant drop in net profit.

The company posted a net profit of Rs 8,470 crore for Q4 FY25, down over 51% from Rs 17,407 crore in the same quarter last year.

The company’s EBITDA stood at Rs 16,700 crore, marking a 4.1% decline year-on-year, while Profit Before Tax (before exceptional items) rose significantly by Rs 2,526 crore to reach Rs 12,068 crore.

Notably, automotive free cash flows improved to Rs 19,400 crore, up by Rs 5,300 crore compared to the previous year.

The company has also recommended the declaration of a final dividend of Rs 6 per equity share for the financial year ended March 31, 2025.