Air India & Tata Digital Losses Drag Tata Sons’ New Ventures Toward ₹29,000 Crore Setback: Report
Air India and Tata Digital drive sharp surge in Tata Sons’ new venture losses, raising concerns over execution and financial discipline
India, Apr 07 : A group of emerging businesses under Tata Sons is expected to record a massive combined loss of nearly ₹29,000 crore in FY26, significantly overshooting earlier projections of ₹5,700 crore. The sharp rise, based on internal estimates cited in a report, highlights growing financial pressure across key ventures.
In the first nine months of FY26 alone, losses have already reached around ₹21,700 crore—surpassing the total loss of ₹16,550 crore reported in FY25. The spike is largely attributed to Air India, Tata Digital, Tata Electronics, and Tejas Networks. While there had been some improvement between FY23 and FY24, losses began rising again in FY25 and have accelerated further this fiscal year.
The widening gap between expectations and actual performance has also impacted leadership decisions. The reappointment of chairman Natarajan Chandrasekaran for a third term was deferred during the February board meeting. He is now expected to present a comprehensive recovery plan in June, addressing concerns flagged at the board level.
Tata Digital, one of the group’s most ambitious initiatives, continues to struggle despite heavy investments exceeding ₹24,000 crore. The platform, which integrates services like BigBasket, Tata 1mg, Croma, Tata CLiQ, and Tata Neu, is projected to incur losses exceeding ₹5,000 crore in FY26. Within the first nine months, losses have already crossed ₹3,750 crore, surpassing earlier estimates.
Industry experts point to execution challenges, including leadership changes, slower product evolution, and over reliance on loyalty-driven growth strategies. Competition in the online grocery and digital commerce space has intensified, with rivals gaining ground through stronger logistics and faster delivery systems. BigBasket, in particular, has seen declining visibility among customers, with some users shifting to competing platforms.
Meanwhile, Air India remains the biggest contributor to the overall losses. The airline is projected to report a staggering ₹20,000 crore loss in FY26, compared to ₹11,000 crore in FY25. Around ₹15,000 crore of these losses have already been recorded in the first nine months.
Experts attribute Air India’s financial strain to a mix of external pressures, including geopolitical challenges, high fuel prices, and operational disruptions. However, concerns remain over service quality, with expectations that improvements should have been more visible several years into private ownership.
The mounting losses across these ventures have intensified scrutiny of Tata Sons’ expansion strategy. As the group continues to invest in long-term growth areas, balancing profitability with scale has become a pressing challenge. Alongside Air India and Tata Digital, Tata Electronics is also expected to report losses of around ₹3,000 crore, while Tejas Networks may slip into the red after posting profits the previous year.
With a critical board meeting scheduled in June, the focus is now on how the group plans to restore financial stability and improve operational efficiency across its new-age businesses.
