Tata Sons' consolidated net profit fell 35.7% to ₹17,923.4 crore in FY26 compared to ₹27,876.3 crore in FY25, marking the lowest consolidated net profit since FY21 when it reported ₹15,439.7 crore. Despite this decline, the holding company achieved robust double-digit revenue growth of 16.8% year-on-year, with consolidated net sales rising to ₹6.49 trillion in FY26 from ₹5.56 trillion in FY25. This marks the second consecutive year of profit decline for Tata Sons, following a 20% drop in FY25 from a record high of ₹34,860 crore in FY24.
On a standalone basis, Tata Sons' net profit increased 21.8% to ₹31,952 crore in FY26 from ₹26,231.7 crore in FY25, driven by gains from Tata Capital's IPO and higher dividend income from listed associates including Tata Steel, TMPV, Titan Company, and Tata Consumer. However, standalone net sales declined 8.1% to ₹35,568.4 crore from ₹38,709.7 crore in FY25, primarily due to a 12.7% year-on-year decline in dividend income from TCS to ₹28,567 crore from ₹32,722 crore. Overall standalone revenues were up 9.1% to ₹42,366.6 crore, while other income surged to ₹6,798.2 crore from ₹124.9 crore in the previous year.
The sharp decline in consolidated profit was primarily attributed to losses at unlisted subsidiaries, with Air India reporting a net loss of ₹22,238 crore in FY26, more than doubling from ₹10,859 crore in FY25. Tata Digital posted a net loss of ₹4,974 crore in FY26, up from ₹4,610 crore in FY25, while Tata Electronics' net loss widened to ₹1,611 crore from ₹70 crore in the previous year. Other significant contributors to losses included Agratas with a net loss of ₹1,101 crore, Tata Play at ₹552 crore, Tata Projects at ₹891 crore, and Tata Realty & Infrastructure at ₹456 crore. However, Tata AutoComp Systems and Tata AIA remained the most profitable unlisted subsidiaries with net profits of ₹1,091 crore and ₹1,008 crore respectively.
The combined net profit of Tata Sons' six listed subsidiaries increased marginally to ₹54,561.9 crore from ₹54,010.2 crore year-on-year, with TCS and Tata Capital reporting year-on-year rises in their net profit. Among listed subsidiaries, TCS and Tata Capital reported increases in their net profit in FY26, while Tata Tele (Maharashtra) reported a sharp contraction in its net loss. However, Tata Communications, Tata Elxsi, and Tejas Networks reported double-digit declines in their net profit during the fiscal year. Tata Sons earned dividend income of ₹4,019 crore from listed associate companies in FY26, up 15.07% from ₹3,493 crore in FY25, with associates including Tata Steel, TMPV, Tata Motors, Titan Company, Tata Power, and Indian Hotels contributing to the holding company's financial performance.
Tata Electronics emerged as the top unlisted subsidiary by revenue, generating ₹1.31 trillion in FY26, up from ₹66,601 crore in the previous year. Air India's revenues declined by nearly 10% to ₹71,870 crore from ₹78,636 crore in FY25, while Tata Digital reported revenues of ₹35,990 crore in FY26, up from ₹32,188 crore in FY25. The company earned dividend income of around ₹4,019 crore from listed associate companies in FY26, up 15.07% from ₹3,493 crore in FY25, with associates including Tata Steel, TMPV, Tata Motors, Titan Company, Tata Power, and Indian Hotels contributing to the holding company's financial performance.
