Tata Sons has been consistently profitable for the last decade and has earned a strong profit of around Rs 1.97 lakh crore during this period. However, some unlisted companies of the group like Air India and Tata Digital are continuously incurring losses, which has become a matter of concern.

Business News: Tata Sons, one of India’s largest corporate groups, is in the news these days for its increasing debt and loss-making companies. On one hand the company has been continuously profitable for the last 10 years, while on the other hand the increasing losses of some unlisted companies have raised questions on the financial condition of the group. Noel Tata, who is the chairman of Tata Trusts, has recently expressed concern about the huge investments and continuing losses in these new businesses.

Continuously increasing deficit and debt

According to the data for FY 2024-25, the net loss of the unlisted Tata group companies has widened to about ₹25,568 crore, showing a growth of about 58% year-on-year. The total loss of these companies in the last decade has reached about ₹ 1.75 lakh crore. The impact of these losses is also visible on the group’s total debt, which has increased to ₹3.46 lakh crore—an increase of about 27.5%. Out of total 100 subsidiaries, 31 companies are incurring losses, which has become a matter of concern for the group.

The biggest name among the loss making companies is Air India, which has registered a loss of about ₹ 3,975 crore. It also has a debt of over ₹94,000 crore, which is a major financial risk for the group. Other major loss-making businesses include:

• Tata Teleservices — ₹1,335 crore loss
• Tata Electronics — ₹1,272 crore loss
• Tata Digital — loss of around ₹1,000 crore

Moreover, losses of Noel Tata-led Tata International have also widened to ₹457 crore.

The other side of profits and growth

Despite these challenges, Tata Sons’ overall performance remains strong. The company has earned a profit of about ₹1.97 lakh crore in the last 10 years. Also, the group’s total revenue has increased by 25.6% to a record high of ₹5.99 lakh crore. The share of unlisted companies in this has increased to 47.3%, which shows that these new businesses are playing an important role in increasing sales.

On the other hand, dependence on Tata Consultancy Services (TCS) has reduced. While TCS’s contribution was 73% in 2016, it has now declined to about 42.6%—signalling a change in the group’s business model.

Aggressive investment in new businesses

Tata Sons is investing dividends from its traditional businesses in new areas. The company received a dividend of approximately ₹36,514 crore in FY2025, of which 92% came from TCS. Since 2020, 84% of total new investments have gone into unlisted companies. This year alone, ₹31,000 crore was invested in these businesses.

Notably, the investment in Tata Digital has increased to ₹22,903 crore, making it the group’s largest investment—overtaking even Tata Motors and Air India.