Tata Motors’ scheme of arrangement gets NCLT sanction

26 Aug 2025 , 11:05 AM

Tata Motors Ltd. announced on Monday that the National Company Law Tribunal (NCLT), Mumbai Bench, has sanctioned its Composite Scheme of Arrangement. The scheme includes the arrangement of Tata Motors Commercial Vehicles Limited, Tata Motors Limited, and Tata Motors Passenger Vehicles Limited, along with their respective shareholders.

The company announced that the said scheme, under sections 230-232 of the Companies Act, 2013 will be effective once it receives a certified copy of the NCLT order and is filed with the Registrar of Companies, Mumbai. 

The company said that this restructuring is part of Tata Motors’ broader corporate reorganisation directed to sharpen focus on core business segments.

This order comes after the business announced its results for the quarter ended June 2025. The business posted a net profit of ₹3,924 Crore. In the previous corresponding quarter, the business posted a net profit of ₹5,566 Crore.

The business posted a topline of ₹1.04 Lakh Crore. This was in line with expectations, however, profitability was impacted by weakness at JLR.

The business logged an EBITDA of ₹9,274 Crore in Q1FY26. In the previous comparable quarter, EBITDA came in at ₹15,785 Crore.

The company said that its domestic operations also faced challenges.

At around 11.00 AM, Tata Motors was trading 0.85% lower at ₹680.95, against the previous close of ₹686.80 on NSE. The counter touched an intraday high and low of ₹686.95, and ₹678.30, respectively.

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