A group of emerging businesses under Tata Sons is expected to report a combined loss of nearly Rs 29,000 crore in FY26, far exceeding earlier projections of Rs 5,700 crore based on internal estimates.
In the first nine months of FY26 alone, losses have already reached Rs 21,700 crore, surpassing the full-year FY25 figure of Rs 16,550 crore, largely due to setbacks in Air India, Tata Digital, Tata Electronics, and Tejas Networks.
Tata Sons’ New Ventures Face ₹29,000 Crore Loss in FY26 as Setbacks Deepen Across Key Businesses
Although losses had reduced between FY23 and FY24, they increased again in FY25 and have surged further this year, indicating an inconsistent yet upward trend.
As a result, the gap between forecasts and actual performance contributed to delaying the reappointment of chairman Natarajan Chandrasekaran for a third term, with Noel Tata raising concerns.
He is now expected to present a recovery plan in June aimed at controlling these mounting losses.
Among newer ventures, Tata Digital has become a major concern, as it continues to struggle despite heavy investments exceeding Rs 24,000 crore since its launch in 2019.
Its FY26 losses are projected to cross Rs 5,000 crore, the highest so far, with Rs 3,750 crore already recorded in the first nine months.
According to Thomas Kuruvilla, “While the gestation argument is real, there were missteps: leadership instability, slow product improvements, and a loyalty programme mistaken for a growth engine.”
He further noted that competitors overtook BigBasket through stronger execution, adding, “They won on dark store density and delivery speed, the unglamorous infrastructure work Tata Digital underinvested in.”
Tata Digital Losses Led by BigBasket, Trend Likely to Continue
In FY25, Tata Digital reported losses of Rs 4,610 crore, led by BigBasket, followed by Croma, Tata 1mg, and Tata CLiQ, with a similar pattern expected to continue.
Satish Meena observed, “Unlike its competitors, BigBasket is not that visible to customers… Tata, it seems, is not keen on spending more money on it and is instead focusing on profitability.”
Some analysts also argue that Tata Digital functions largely as a loyalty platform, incurring annual losses close to Rs 5,000 crore.
Meanwhile, Air India remains the biggest contributor to losses, with FY26 projections reaching Rs 20,000 crore, compared to Rs 11,000 crore in FY25.
Around Rs 15,000 crore of these losses have already been recorded in the first nine months.
Kuruvilla remarked that blaming management entirely would be “unfair and analytically lazy,” citing external pressures like airspace restrictions, high crude prices, and the Ahmedabad crash as a “perfect storm.”
He added, “The real question is not whether management caused the losses… but whether they built enough financial resilience to absorb shocks of this scale.”
At the same time, he emphasized accountability for service quality, stating, “geopolitics excuses the financials, it does not excuse the customer experience.”
He further criticized ongoing service issues, saying, “The external environment may be brutal, but inside the cabin, that is entirely Tata’s problem to own.”
Consequently, Chandrasekaran faces increasing scrutiny as the group attempts to balance long-term investments with financial pressure.
Additionally, Tata Electronics is expected to post a Rs 3,000 crore loss, while Tejas Networks may shift from a Rs 500 crore profit to a Rs 1,000 crore loss.
