Tata Motors Commercial Vehicles Share Price Today: Strong Market Debut After Demerger
Tata Motors Commercial Vehicles Share Price Today: Strong Market Debut After Demerger
Tata Motors’ commercial vehicle (CV) business officially made its debut on the Indian stock market today, marking a major milestone for the Tata Group. The listing follows the company’s demerger, which became effective on October 1, 2025, separating the commercial and passenger vehicle divisions into independent entities.
The newly listed Tata Motors Commercial Vehicles Ltd (TMCV) started trading at ₹335 per share on NSE and ₹330.25 per share on BSE, opening at a premium of around 28% over its implied value of ₹260–₹270. This strong listing reflects positive investor sentiment toward the commercial vehicle arm’s financial strength and future growth prospects.
Key Takeaways
- Future Plans: Electrification, hydrogen trucks, and sustainable mobility focus
- Listing Price: ₹335 (NSE), ₹330.25 (BSE) — about 28% above implied value
- Market Cap: Over ₹1.2 lakh crore, combined group valuation crosses ₹2.7 lakh crore
- Demerger Effective Date: October 1, 2025; record date October 14, 2025
- Analysts View: Demerger unlocks value and sharpens business focus
- Financials: FY25 revenue ₹75,055 crore, EBITDA ₹8,856 crore, margin 11.8%
A Defining Moment for Tata Motors
Speaking on the listing day, N. Chandrasekaran, Chairperson of Tata Motors, called it a “defining moment in the company’s journey.” He noted that while commercial vehicles were consistently profitable, the passenger vehicle division required long-term restructuring. The separation now gives each unit the independence to pursue its own strategic goals.
“Cash flows earlier came largely from commercial vehicles and were utilized for passenger vehicle expansion,” he said. “With this demerger, both arms now have the freedom to focus on their respective business strengths and growth paths.”
Demerger Brings Strategic Clarity
The Tata Motors demerger was aimed at giving sharper operational focus and enabling better value discovery for investors. The commercial vehicle business, with its strong dealer network, loyal customer base, and profitable performance, now stands as a debt-free company providing a strong foundation for future investments.
Analysts believe the move removes the “conglomerate discount” previously associated with the combined Tata Motors entity. Based on Ashok Leyland’s EV/EBITDA multiple (12.9x), the fair value of Tata Motors’ CV arm is estimated at ₹310–₹320 per share, aligning with its listing price range.
Also Read: Asian Paints Q2 FY26 Results: Profit Rises 43%, Dividend Declared
Focus on New Technology and Global Growth
Tata Motors Commercial Vehicles is now turning toward next-generation transport solutions. The company is developing electric trucks, hydrogen-powered vehicles, and new energy buses, positioning itself as a leader in sustainable mobility.
Chandrasekaran confirmed that the company is close to completing its Iveco transaction, which will further strengthen its global reach and technology base. “We have made the company debt-free and bold. The next phase will focus on innovation and transformation,” he said.
Analyst Outlook and Market Impact
Following the demerger, passive funds and index trackers are expected to realign portfolios to include the new stock. Experts suggest this may create short-term volatility, but in the long run, value unlocking and focused growth will drive stronger performance.
With a combined market capitalization exceeding ₹2.7 lakh crore, the two new Tata Motors entities Passenger Vehicles and Commercial Vehicles together trade at over ₹742 per share, nearly 12.4% higher than the pre-demerger price of ₹660.75.
The demerger is expected to set a benchmark for corporate restructuring in India, offering investors a clear choice between consumer-oriented passenger vehicles and infrastructure-driven commercial vehicles.
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