N. Chandrasekaran's tenure as Tata Sons Chairman, set to conclude in February 2027, has been marked by significant growth in some areas, but also substantial challenges from the group's newer ventures. The latest annual report reveals that three unlisted companies—Air India, Tata Digital, and Tata Electronics—collectively incurred losses exceeding ₹27,000 crore last fiscal year, presenting a formidable task for his successor.
Air India Faces Mounting Losses Amidst Multiple Headwinds
Air India reported the largest share of these losses, with figures doubling from the previous year. The airline posted a staggering loss of ₹22,238.22 crore as of March 31, 2026, compared to ₹10,858.82 crore in the preceding fiscal year. The company cited a harrowing year, including the tragic June 12, 2025 plane crash that resulted in 260 fatalities.
Beyond the accident, Air India contended with severe external pressures, including airspace closures, fuel price hikes driven by the West Asia conflict, and adverse foreign exchange fluctuations. The airline acknowledged that its transformation is a complex, long-term process, projected to take five to ten years due to persistent supply chain disruptions, the need to modernize legacy systems, and a comprehensive overhaul of its culture and fleet.
Tata Digital Navigates Competitive E-Commerce Landscape
Tata Digital, a key player in India's rapidly evolving e-commerce sector, reported a loss of ₹4,974 crore in FY22. Despite these losses, the company maintains ambitious growth plans. Its flagship platform, Tata Neu, has achieved a gross merchandise value (GMV) of ₹46,515 crore within four years of its launch, competing against major rivals like Blinkit, Instamart, and Zepto through its BigBasket grocery service. Croma, another digital venture, recorded a GMV of ₹25,539 crore, while Tata 1mg stands as a leading e-pharma and e-diagnostics company. Tata Digital aims to further expand its ecosystem into the lending and insurance sectors.
Tata Electronics Breaks Even Amidst Strategic Growth
In contrast to its counterparts, Tata Electronics managed to break even on its operating profits, demonstrating a more positive trajectory. The company has rapidly ascended to become the fourth-largest Tata Group entity by revenue, generating ₹1,31,082 crore. In 2025, Tata Electronics manufactured 12 percent of all phones produced in India.
Furthermore, the company is spearheading significant advancements in domestic manufacturing, constructing India's first high-volume fabrication plant in Gujarat and having successfully packaged India's first indigenous microprocessor. Both the Tata Group and the government are banking on Tata Electronics to become a pivotal hub for semiconductor and electronics manufacturing in the country.