Tata Motors demerger progressing as planned, it will enable long-term returns for shareholders: Chairman N Chandrasekaran

Addressing shareholders in the company's 80th Integrated Annual Report for FY25, the chairman noted that the demerger of Tata Motors into two listed entities—commercial Vehicles and Passenger Vehicles (including EVs and JLR)—is progressing as planned.

"The proposed demerger will bring greater strategic clarity and agility, enabling a more focused approach to execution and value creation, delivering superior experiences for customers, rewarding careers for employees, and long-term returns for shareholders," Chandrasekaran said.

In early FY26, shareholders approved the demerger, which is expected to be effective during the second half of 2025, with shareholders receiving equivalent shares in both entities, the chairman added.

Elaborating on the road ahead, Chandrasekaran said: "We step into FY26 with confidence in our strategy, strength in our execution, and belief in our people."

"We remain vigilant to worldwide volatility, including the impact of changes in global trade conditions and the varying degrees of adoption of electric vehicles across different markets and evolving technologies, to accelerate our production plans while delivering value to our customers," the chairman noted.

Tata Motors' focus remains on delivering consistent growth, enriching customer experience, and innovating for a cleaner, safer, and more connected mobility future, Chandrasekaran stated.

"As we grow, we are also embedding greater automation and AI into our operations, enhancing agility and efficiency while shaping a future-ready manufacturing ecosystem," he added.

"AI in vehicles is improving safety, increasing fuel efficiency, and providing drivers with enhanced connectivity features. This is the new context in which we craft our strategies for the future," the chairman said.

Tata Motors Q4 Results

Tata Motors, the country's leading automobile company, on Tuesday, May 13, reported net profit of ₹8,470 crore in the January-March quarter, marking a decline of 51% from ₹17,407 crore in the same period last year.

Its revenue from operations rose marginally to ₹1.19 lakh crore at the end of March quarter. Its operating profit also known as earnings before interest, taxes, depreciation, and amortisation (EBITDA) improved 1% annually to ₹16,818 crore and its EBITDA margin came in at 14%.

Despite the Q4 decline, Tata Motors delivered a record full-year performance in FY25 as its revenue came in at ₹4.39 lakh crore, EBITDA at ₹57,600 crore, and net profit at ₹28,100 crore, the company said in a press release.