The scheme involves Tata Motors Limited, Tata Motors Commercial Vehicles Limited, and Tata Motors Passenger Vehicles Limited, along with their respective shareholders.
The company said the scheme, sanctioned under Sections 230–232 of the Companies Act, 2013, will become effective once a certified copy of the NCLT order is filed with the Registrar of Companies, Mumbai. The restructuring is part of Tata Motors’ broader corporate reorganisation aimed at sharpening focus on core business segments.The order comes after Tata Motors reported its June quarter results on August 8. Net profit for the quarter stood at ₹3,924 crore, marginally above analyst estimates but lower than the ₹5,566 crore reported a year earlier.
Revenue came in at ₹1.04 lakh crore, in line with expectations, though profitability was dented by weakness at JLR.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) fell to ₹9,724 crore from ₹15,785 crore a year ago, while margins slipped to 9.3% from 10.4%. JLR revenues declined by 9.2% to £6.6 billion, with EBIT margins sliding 490 basis points to 4.0%, weighed by US trade tariffs.The company’s domestic operations also faced headwinds. Commercial vehicle revenues declined by 4.7% to ₹17,000 crore, though margins improved to 12.2% aided by better realisations and cost controls. Passenger vehicle revenues fell 8.2% on softer demand and model transition effects.
Also Read: Tata Motors Q1 Results: Net profit, revenue and margin slip from last year
“Despite stiff macro headwinds, the business delivered a profitable quarter, supported by strong fundamentals. As tariff clarity emerges and festive demand picks up, we are aiming to accelerate performance and rebuild momentum across the portfolio. Against the backdrop of the upcoming demerger in October 2025, our focus remains firmly on delivering a strong second-half performance,” PB Balaji, Group Chief Financial Officer, Tata Motors had said earlier.
Ahead of the NCLT announcement, shares of Tata Motors closed at ₹686.10 on the NSE, up 0.85% from the previous session.
