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The Economic Times·4 min read·medium

ET Exclusive: Tata Sons reported a 22% increase in annual profit for the year ended March 26

K
Kala Vijayraghavan and Sagar Malviya
ET Exclusive: Tata Sons reported a 22% increase in annual profit for the year ended March 26
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Tata Sons reported a 22% increase in annual profit for FY2026, reaching Rs 31,961 crore despite significant losses in its digital and aviation ventures. Chairman N. Chandrasekaran defended these losses as necessary long-term strategic investments for the group's transformation.

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As a massive conglomerate, Tata's financial health and strategic pivots in digital and aviation sectors significantly impact the Indian economy and global market perception.

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Mumbai: Tata Sons reported a 22% increase in annual profit, driven by investment gains and stronger earnings from its portfolio companies, while Chairman N. Chandrasekaran defended continued investments in loss-making businesses such as Air India and Tata Digital as long-term strategic bets.The holding company posted standalone net profit of Rs 31,961 crore for the year ended March 2026, up from Rs 26,232 crore a year earlier, while revenue rose 9.1% to Rs 42,367 crore. The board recommended a dividend of Rs 1,10,717 per share. At the group level, revenue rose 7.8% to Rs 16.24 lakh crore and profit climbed 52% to Rs 1.71 lakh crore. Chandrasekaran said revenue is “2.1x and profits are 5.4x their FY20 levels, reflecting sustained and significant turnaround efforts across the institution.”Air India remained the group’s biggest drag, reporting a net loss of Rs 22,238 crore in FY26.

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