Tata Sons profit grows 21.8% in FY26, revenue tops ₹42,367 crore; Air India losses deepen

Tata Sons posted strong FY26 earnings on 27 July as the group profit surged and board recommended higher dividend for shareholders.

Tata Sons reported a sharp increase in profitability for the financial year ended March 2026, with profit after tax rising 21.8% year-on-year to ₹31,961 crore, while revenue grew 9.1% to ₹42,367 crore, reflecting sustained growth across the conglomerate despite challenges in its aviation business.

The figures were disclosed in the company's FY26 Annual Report, which also proposed a final dividend of ₹1,10,717 per share, subject to shareholder approval.

Tata Group records robust financial growth in FY26

In his letter to shareholders, Tata Sons Chairman N Chandrasekaran highlighted the group's overall financial performance, describing FY26 as another year of solid progress.

"For the Tata Group, 2026 overall has been a good year in terms of financial metrics. Tata Sons' revenue grew by 9.1% to ₹42,367 crore in FY26, while profits (after tax) grew 21.8% to ₹31,961 crore."

At the group level, aggregate revenue increased 7.8% to ₹16.24 lakh crore, while profit after tax climbed 51.9% to ₹1.71 lakh crore. Chandrasekaran said the group's financial scale has expanded significantly over the past six years.

"The group's revenue is now 2.1 times and profits 5.4 times their FY20 levels," reflecting "sustained and significant turnaround efforts across the institution."

Tata Electronics becomes the group's fourth-largest business

The annual report underscored the rapid rise of Tata Electronics, which became the fourth-largest Tata Group company by revenue within just four years of its establishment.

The business generated ₹1,31,082 crore in revenue during FY26, marking one of the fastest growth trajectories within the conglomerate. Chandrasekaran said the company has "become the fourth-largest Tata Group company by revenue" and added that its operating profits have now reached breakeven.

The performance reflects Tata Group's increasing focus on electronics manufacturing as India strengthens its position in the global semiconductor and electronics supply chain.

Air India posts wider losses amid operational challenges

While several businesses delivered strong growth, Air India continued to face financial headwinds during FY26.

The airline's loss widened to ₹22,238 crore, compared with ₹10,859 crore in the previous financial year. Chandrasekaran described FY26 as "the most challenging year for Air India", citing multiple external pressures, including prolonged airspace closures, elevated fuel prices linked to the West Asia conflict, foreign exchange volatility and the AI171 crash.

Despite the setbacks in aviation, Tata Sons' overall financial performance highlighted the resilience of its diversified portfolio, supported by strong contributions from its manufacturing, technology and consumer businesses.