Tata Sons profit rises 21.8%, Air India losses double to Rs 22,238 crore

Chandrasekaran’s remuneration rises to Rs 158.6 crore in FY26.

Mumbai: Tata Sons, the holding company of the Tata Group, reported a strong financial performance with a 21.8% increase in profit during the latest financial year. The growth highlights the group’s resilience across its diverse portfolio of businesses despite ongoing challenges in the aviation sector.

While Tata Sons posted healthy earnings, Air India, which was acquired by the Tata Group in 2022, recorded a significant rise in losses. According to the latest financial results, the airline’s losses nearly doubled, reaching ₹22,238 crore. The increased losses are largely attributed to fleet modernization, aircraft maintenance, operational restructuring, and investments aimed at transforming the airline into a globally competitive carrier.

Since taking over Air India, the Tata Group has been investing heavily in upgrading the airline’s services, expanding its fleet, improving customer experience, and integrating operations with other Tata-owned airlines. These strategic investments are expected to strengthen Air India’s long-term position, although they continue to impact the company’s short-term financial performance.

Industry experts believe that while the airline’s current financial losses remain substantial, the ongoing transformation is part of a long-term growth strategy. The aviation sector is highly capital-intensive, and large investments are often required before operational improvements begin to generate sustainable profits.

Meanwhile, Tata Sons continues to benefit from strong performances across several of its key businesses, including information technology, automobiles, consumer products, retail, and financial services. These diversified revenue streams have helped offset some of the financial pressure created by Air India’s restructuring efforts.

Analysts expect the Tata Group to continue investing in Air India over the coming years as it focuses on expanding international routes, modernizing its aircraft fleet, enhancing digital services, and improving operational efficiency. The success of these initiatives will play a crucial role in determining the airline’s path toward profitability.

Despite the short-term financial challenges posed by Air India, Tata Sons’ overall profit growth demonstrates the strength of the Tata Group’s diversified business model and its commitment to long-term value creation.