Tata Motors, one of India’s largest automobile manufacturers, has seen its share price rally significantly over the past few sessions, driven by a series of positive developments across its global and domestic operations. The surge is primarily attributed to record profitability at Jaguar Land Rover (JLR), strong financial performance in its Electric Vehicle (EV) segment, and a proposed strategic demerger aimed at unlocking long-term shareholder value.
According to data shared by international and domestic news outlets, JLR reported its highest quarterly pre-tax profit in a decade—a staggering £875 million for the January–March 2025 period. This marks a sharp turnaround from previous years, when JLR was grappling with supply chain disruptions and weak demand in key markets. The robust performance was supported by increased demand for premium vehicles, cost optimization, and a strategic shift toward electrification.
Back home, Tata Motors’ Electric Vehicle (EV) business achieved a historic milestone by reporting a positive EBITDA margin for the first time. This places the company among a select few global automakers who have managed to make their EV operations profitable at this scale. Analysts believe this signals a maturing product portfolio and cost discipline, with models like the Tata Nexon EV and Tiago EV gaining strong traction in urban markets.
Another significant development buoying investor sentiment is the recently proposed strategic demerger of Tata Motors into two separate listed entities. One entity will house the Commercial Vehicles (CV) business, while the other will consolidate the Passenger Vehicles (PV), EV, and JLR businesses. The move is designed to bring sharper strategic focus, improve capital allocation, and allow independent growth trajectories for the CV and PV+JLR arms. Market experts see this as a value-unlocking initiative that could lead to a re-rating of the stock.
Adding further momentum is the India–UK Free Trade Agreement (FTA), which is expected to ease import tariffs on British-made vehicles like those from JLR. This could potentially boost sales of Jaguar and Land Rover models in India and enhance the brand’s competitiveness in the region.
Moreover, global markets responded positively to news that the United States has delayed a proposed 50% tariff on European goods, which would have negatively impacted high-end auto exports. This temporary relief has removed a layer of uncertainty and contributed to the overall bullish sentiment around Tata Motors.
All these developments have culminated in a strong upward move in Tata Motors’ stock price, with investors betting on both its global turnaround and domestic growth. The company’s ability to maintain a balance between legacy operations and future-ready segments like EVs has positioned it as a frontrunner in the evolving automotive landscape.
While the stock's trajectory remains subject to broader market and macroeconomic conditions, Tata Motors’ latest milestones underscore its transformation from a cyclical auto player to a globally competitive mobility company with sustainable profitability in sight.
Written by Indira Securities SEBI Registered with 30 plus years of experience in Stock Market!!!