After the demerger and Q2FY26 results, the contrast between Tata Motors and Tata Motors Passenger Vehicles has become sharper.
Tata Motors Q2 Results
Tata Motors reported a consolidated net loss of ₹867 crore for the September quarter, weighed down by mark-to-market losses of ₹2,026 crore related to its investment in Tata Capital. The newly-listed company had posted a net profit of ₹498 crore in the same quarter last year.
Revenue from operations rose 6% year-on-year to ₹18,585 crore, compared with ₹17,535 crore in the corresponding period a year earlier.
The company said the proposed acquisition of IVECO, announced on July 30, 2025, is progressing as planned, with regulatory approvals underway and the acquisition is expected to be completed in April next year.
Its topline is expected to rise to $24-25 billion with the completion of the acquisition.
Tata Motors Passenger Vehicles Q2 Results
Tata Motors Passenger Vehicles posted a quarterly profit surge yesterday, November 14, as the carmaker recorded a one-time gain tied to the demerger of its commercial vehicles unit.
The company's profit jumped to ₹76,170 crore, up 2110% in the second quarter from ₹3,446 a year ago. Excluding this gain, the company slipped into the red with a loss of ₹6368 crore.
Total revenue from operations in the second quarter stood at ₹72,349 crore as against ₹83,656 crore in the year-ago period, down 13.5% the company said.
The performance was impacted significantly by the cyber incident at JLR, said TMPVL. The Range Rover maker's profit margin for the full year could now be entirely wiped out as it pegged EBIT margin at 0-2% from 5-7% earlier.
Tata Motors vs TMPV: Which is a better bet?
Commenting on the earnings, Harshal Dasani, Business Head at INVAsset PMS, said that the weakness was visible in TMPV Q2 results across both the domestic PV segment and the JLR division, which faced production disruptions, softer global demand and margin pressures.
The Commercial Vehicles business also reported a quarterly loss, but its operational trend was more stable, he added. "Revenue saw a modest uptick, though the backdrop remains challenging due to slower infrastructure ordering, competitive intensity and broader freight-cycle softness."
# Tata Motors vs TMPV: Which Stock to Buy After Q2 Results and Demerger? A Head-to-Head Breakdown
The Tata Motors demerger has split the auto giant into two distinct powerhouses: Tata Motors Commercial Vehicles (TMCV), focusing on trucks, buses, and pickups, and Tata Motors Passenger Vehicles (TMPV), encompassing cars, EVs, and the premium Jaguar Land Rover (JLR) stable. Effective October 1, 2025, this 1:1 split unlocked value for shareholders but also amplified scrutiny on each entity's standalone viability. Fast-forward to Q2 FY26 results (July-September 2025), and the verdict is mixed: one-time gains masked underlying woes, while stocks reacted with volatility. So, in this post-demerger, post-earnings landscape, which is the smarter buy—TMCV's steady truck grind or TMPV's flashy EV-luxury gamble? Let's dissect the data, expert views, and risks to find out.
## The Demerger at a Glance: Unlocking Value or Unraveling Complexity?
Tata Motors' vertical split was a strategic pivot to sharpen focus amid divergent growth trajectories. Shareholders holding shares before October 13, 2025, received one TMCV and one TMPV share per original Tata Motors share. TMCV listed on November 12, 2025, under the ticker "TMCV," while TMPV trades as "TMPV." The cost of acquisition splits 31.15% to TMCV and 68.85% to TMPV for tax purposes.
This move isn't just cosmetic—it's about tailored capital allocation. TMCV eyes infrastructure-led commercial demand, bolstered by an impending IVECO acquisition (slated for April 2026). TMPV, meanwhile, bets big on India's EV surge and JLR's global luxury rebound. But with Q2 throwing curveballs, the demerger's honeymoon phase feels more like a reality check.
## Q2 FY26 Highlights: Gains, Losses, and One-Time Smoke Screens
Earnings season peeled back the layers, revealing resilience in one arm and headwinds in the other. Here's the raw scorecard:
| Metric | TMCV (Commercial Vehicles) | TMPV (Passenger Vehicles) |
|-------------------------|---------------------------------------------|---------------------------------------------|
| **Revenue** | ₹18,585 Cr (+6% YoY) | ₹72,349 Cr (-13.5% YoY) |
| **Net Profit/Loss** | Loss of ₹867 Cr (vs +₹498 Cr YoY) | +₹76,170 Cr (+2,110% YoY, incl. demerger gain of ~₹82,600 Cr); underlying loss ₹6,368 Cr |
| **Key Drivers** | Modest volume uptick in LCVs; offset by ₹2,026 Cr mark-to-market losses on Tata Capital investments | JLR cyber incident caused production halts, -24.3% revenue to £4.9 Bn, EBIT margin -8.6%; domestic PV stable but global softness hit hard |
| **Margin Outlook** | Stable ops; GST cuts to boost profitability by 1-2% | JLR FY26 EBIT revised to 0-2% (from 5-7%); exceptional cyber costs £238 Mn |
TMCV's loss was a blip—operational stability shone through with revenue growth amid freight-cycle softness. TMPV's headline profit was a demerger mirage; strip it out, and you're left with a steep underlying deficit, largely from JLR's cyber woes (resumed production post-incident, but scars linger). Domestic PV demand shows green shoots, but global luxury demand remains tepid.
## Stock Performance: Volatility Meets Value Unlocking
Post-listing, both stocks have been whipsawed:
- **TMCV**: Debuted at ~₹270, surged 27-28% initially on demerger hype, but Q2 losses dragged it to a 52-week low of ₹306. Closed at ₹320.40 (BSE), market cap ₹1.18 lakh Cr. Down ~2% intraday post-results, but analysts see it as a dip-buy opportunity.
- **TMPV**: Opened at ₹400, but Q2 reality bit hard—down 2.3% to close at ₹391.60 (BSE), market cap ₹1.44 lakh Cr. 52-week range: ₹335-₹508. The demerger gain couldn't offset JLR fears, leading to a 1.6% drop on results day.
In a Nifty Auto index up ~5% YTD, both lag peers like Maruti or M&M, underscoring demerger digestion pains. Yet, TMCV's relative stability (less JLR exposure) has buffered it better.
## Analyst Takes: Stability vs. Upside Potential
Experts are split, but the tilt favors TMCV for near-term conviction:
- **Abhinav Tiwari (Bonanza Research)**: Prefers TMCV for its "better option post-demerger." Cites GST reductions aiding LCV fleet expansions, reviving infrastructure orders, and the IVECO tie-up (to scale topline to $24-25 Bn). Sees lower volatility and steadier cash flows—ideal for conservative portfolios.
- **Harshal Dasani (INVAsset PMS)**: Bulls on TMPV for "higher-upside, higher-risk" plays. India's EV franchise (Nexon.ev leading sales) and JLR's luxury re-rating post-cyber normalization could deliver explosive growth. But warns of execution risks wiping out FY26 profits.
- **Prashanth Tapse (Mehta Equities)**: "More traction in TMCV this FY." Expects commercial biz to outpace TMPV amid global headwinds, with demerger enabling sharper focus and value unlocking.
Consensus: TMCV for stability (target implied ~₹400+ on GST/IVECO catalysts); TMPV for aggressive bets (potential re-rating to ₹500+ if JLR stabilizes).
## Head-to-Head: TMCV Edges Out for Most Investors
| Factor | TMCV Winner? | Why? |
|---------------------|--------------|------|
| **Near-Term Growth** | ✅ Yes | Infrastructure revival + IVECO > JLR cyber hangover |
| **Risk Profile** | ✅ Yes | Lower volatility; domestic-focused vs. global exposure |
| **Valuation** | Neutral | Both trade at ~10-12x FY27 EV/EBITDA; TMCV cheaper on P/E post-loss |
| **Long-Term Upside**| ❌ No | TMPV's EV/luxury moat shines brighter post-2026 |
| **Dividend Yield** | Neutral | Both nascent; TMCV more likely to initiate sooner |
**Risks to Watch**: TMCV faces freight slowdowns and competition; TMPV battles JLR margins (global EV shift, China rivalry) and supply chain snags. Broader auto sector: festive demand boost vs. rising input costs.
## The Verdict: Buy TMCV for Now, Eye TMPV for the Horizon
Post-Q2 and demerger, **TMCV emerges as the better buy** for most investors. Its operational resilience, policy tailwinds (GST cuts), and acquisition firepower offer a safer entry at current levels—think 20-25% upside in 12 months. TMPV, while tempting for growth chasers, needs JLR clarity; it's a hold/add on dips below ₹380.
In Tata's bifurcated world, TMCV is the reliable workhorse; TMPV, the high-octane racer. Your pick? Depends on risk appetite—but with markets jittery, bet on the trucker.
*What's your move—TMCV dip-buy or TMPV EV bet? Share in the comments!*
*(As of November 15, 2025. Sources: Livemint, Goodreturns, Business Today.)
