Air India And Tata Digital Become A Thorn In The Neck? Tata Sons' Debt Increased To ₹3.46 Lakh Crore, Noel Tata Raised Questions
Tata Sons has been profitable for 10 years, but Noel Tata has expressed concern over the huge losses of unlisted companies like Air India and Tata Digital. The net loss of these companies has increased to Rs 25,568.8 crore, taking the total debt of the group to Rs 3.46 lakh crore. A large portion of the dividends received from TCS are being invested in new businesses, while the share of sales of these companies has increased.
Losses of unlisted companies of Tata Sons increased, Noel Tata expressed concern.
Jagran correspondent, Jamshedpur. Tata Sons has been continuously profitable for the last 10 years and has earned a handsome profit of Rs 1.97 lakh crore. However, huge losses of unlisted companies like Air India and Tata Digital have become a matter of concern.
Noel Tata, chairman of Tata Trusts, which holds 66 percent stake in Tata Sons, has raised serious questions on the huge capital investment in these new businesses and the continuous losses.
31 companies in loss, debt increased
According to the report, the net loss of unlisted companies increased by 58.3 percent to Rs 25,568.8 crore in the financial year 2024-25. In the last 10 years, these companies have registered a total loss of Rs 1.75 lakh crore.
This year, 31 out of 100 subsidiary companies were in loss. Air India tops the list with losses of Rs 3,975.8 crore and liabilities of Rs 94,005 crore.
Apart from this, Tata Teleservices (1,335 crore), Tata Electronics (1,272 crore) and Tata Digital (998 crore) are also in loss.
Losses at Noel Tata-led Tata International have also widened to Rs 457 crore. Due to continuous losses, the total debt of the group has increased by 27.5 percent to Rs 3.46 lakh crore.
Boom in revenue, dependence on TCS reduced
Despite losses, these companies have played a big role in increasing sales. Tata Sons' total revenue jumped 25.6 percent to a record Rs 5.99 lakh crore. The share of unlisted companies in total sales has reached 47.3 percent, while TCS's share has come down to 42.6 percent from 73.1 percent in 2016.
Flurry of investment in new businesses
Tata Sons is using the dividends it receives from TCS and other companies to nurture new businesses. Tata Sons received a dividend of Rs 36,514 crore in FY2025, of which TCS alone accounted for 92%.
Since 2020, 84.2 percent of new investments have been in unlisted companies only. This year a record Rs 31,000 crore was infused into them.
With an investment of Rs 22,903 crore, Tata Digital has now become the group's biggest investment, leaving behind Tata Motors and Air India (22,618 crore).
Key points of the report
Big loss: Net loss of unlisted companies has increased by 58.3% to ₹25,568.8 crore in FY 2024-25.
Top Losers: Air India (₹3,975.8 crore loss) and Tata Digital are the biggest losers. The debt burden on Air India has reached ₹94,005 crore.
Changing equation: The share of unlisted companies in Tata Sons' total revenue has increased to 47.3%, while the share of TCS has decreased from 73% to 42.6%.
Huge investment: Tata Digital has now become the group's biggest investment, with a record ₹22,903 crore pumped in.
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