Tata Group Posts Massive Revenue Amid Losses

Tata Sons reported a standalone net profit of ₹31,961 crore for FY2025–26, marking a 22% increase from ₹26,232 crore in the previous year. The growth was driven by strong returns from investments and improved performance of its subsidiaries. The company’s revenue rose 9.1% to ₹42,367 crore, and the board recommended a dividend of ₹1,10,717 per share. At the group level, the Tata Group posted revenue of ₹16.24 lakh crore, up 7.8%, while profits surged 52% to ₹1.71 lakh crore. Chairman N. Chandrasekaran stated that compared to 2020, group revenue has grown 2.1 times and profits 5.4 times.

Despite financial challenges, Tata Sons continues to invest in loss-making businesses like Air India and Tata Digital, calling them long-term strategic bets. Air India reported a net loss of ₹22,238 crore in FY2025–26, while Tata Digital’s losses widened to ₹4,974 crore from ₹4,610 crore a year earlier. Chandrasekaran attributed these losses to market dynamics, including changes in India’s e-commerce sector, airspace closures, rising fuel costs, currency fluctuations, and operational challenges. He noted that Tata Digital has achieved a GMV of ₹46,515 crore in just four years. Air India’s turnaround may take 5–10 years, while the Tata Neu platform is expected to expand financial services, loans, and insurance, aiming to increase monthly customer transactions tenfold.