N Chandrasekaran’s Tata decade: Big bets, big wins but the businesses still in the red

N Chandrasekaran will step down as chairman of Tata Sons, ending a nearly decade-long stint during which he reshaped the Tata Group through a mix of major acquisitions, new-age investments and a push into businesses ranging from aviation and semiconductors to digital commerce and clean energy.

Chandrasekaran, 63, said on Wednesday that he had decided not to offer himself for reappointment after a six-month deadlock over the extension of his term.

In a statement, Chandrasekaran said the Sir Dorabji Tata Trust and Sir Ratan Tata Trust had unanimously resolved to recommend a five-year extension of his tenure. The proposal was subsequently recommended by the Tata Sons Nomination and Remuneration Committee and board before being placed before the board on February 24.

“However, the proposal was not carried through because one of the Board Members did not support it, and in the absence of unanimous support, I chose to defer the decision,” Chandrasekaran said.

His exit comes after differences within Tata Trusts, which controls about 66 per cent of Tata Sons, over his continuation, the group’s investments and the performance of some of its newer businesses.

It also comes ahead of a scheduled Tata Sons shareholders’ meeting on August 18, where his reappointment as director was expected to be considered.

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His nearly decade-long tenure has reshaped the Tata Group into a larger, more diversified conglomerate with aggressive bets across aviation, semiconductors, digital commerce and clean energy. But as he prepares to step down, the group is also left with a sharper question: how long can its profitable core continue to fund a growing list of capital-intensive, loss-making ventures?

Strong headline numbers, but a split portfolio

Financially, the Tata Group has expanded sharply under Chandrasekaran.

At the group level, aggregate revenue rose 7.8 per cent to Rs 16.24 lakh crore in FY26 from Rs 15.34 lakh crore in FY25, while profit after tax jumped 51.9 per cent to Rs 1.71 lakh crore. Chandrasekaran said group revenue is now 2.1 times its FY20 level, while profit has increased 5.4 times.

Tata Sons, the holding company, reported standalone profit of Rs 31,961 crore in FY26, up from Rs 26,232 crore a year earlier, with revenue rising 9.1 per cent to Rs 42,367 crore.

However, the numbers conceal a clear divergence within the group. Established cash generators such as TCS, Tata Motors, Trent and Tata Power continue to drive earnings, while newer businesses — Air India, Tata Digital, Tata Electronics and Agratas — remain in investment mode and are still reporting losses.

Expansion into new sectors

A defining feature of Chandrasekaran’s leadership has been the group’s push beyond its traditional strongholds of IT, autos, steel and consumer goods.

Tata has entered aviation, semiconductors, electronics manufacturing, battery production, digital platforms and renewable energy at scale. This strategic shift has increased both ambition and capital deployment.

Part of the FY26 profit at Tata Sons was also supported by gains from investment sales, including those linked to Tata Capital, following its public listing.

Within the operating portfolio, the clearest gains have come from Tata Motors, Trent and Tata Power.

Tata Motors: EV leadership and a mixed global picture

Tata Motors has emerged as one of the strongest performers of the Chandrasekaran years, particularly in India’s electric vehicle market.

The company has built a dominant position in EV passenger cars with models such as Nexon EV and Punch EV, and has crossed 250,000 cumulative EV sales under its Tata.ev brand. It held a 40.2 per cent EV market share in FY26, according to Vahan data cited by the company.

Following its 2025 restructuring, Tata Motors reported consolidated FY26 revenue of Rs 83,855 crore with an underlying EBITDA margin of 12.3 per cent.

Its UK-based subsidiary Jaguar Land Rover (JLR) had delivered a strong turnaround before FY26, eliminating £5.1 billion of net debt by FY25 and posting 11 consecutive profitable quarters between Q3 FY23 and Q1 FY26.

However, FY26 proved more challenging. JLR’s revenue fell 20.9 per cent to £22.9 billion, impacted by US tariffs and a cyber incident that disrupted production, though the company returned to profit in the fourth quarter.

The Tata Motors story, therefore, reflects both success and emerging volatility rather than a straightforward turnaround.

Trent: Rapid retail expansion drives growth

In the consumer business, Trent has been a standout performer, driven by the rapid expansion of its Zudio format.

The value-fashion chain ended FY26 with 963 stores across 313 cities, making it one of the fastest-growing retail formats in the group.

Momentum has continued into FY27. For the June 2026 quarter, Trent reported a 22 per cent rise in consolidated profit to Rs 519 crore, while revenue grew 18 per cent to Rs 5,755 crore. Expansion of Westside and Zudio has significantly deepened its presence in smaller cities.

However, analysts have flagged moderation in like-for-like sales growth as store additions accelerate, raising questions around long-term productivity.

Even so, Trent remains one of the clearest examples of successful scaling within the Tata portfolio under Chandrasekaran.

TCS: Stable cash engine anchors the group

TCS continues to serve as the financial backbone of the Tata Group.

Chandrasekaran’s own career began at TCS, where he joined in 1987 and rose to become CEO in 2009 before moving to Tata Sons.

Despite global uncertainty in the IT sector and disruption from artificial intelligence, TCS has maintained strong profitability.

For FY26, the company reported revenue of Rs 2.67 lakh crore and net income of Rs 52,820 crore, ensuring steady cash flows for the group.

Tata Power: Profitable shift to clean energy

Tata Power has also strengthened its position as a key contributor while transitioning towards renewable energy.

At the end of FY26, the company had 16,716 MW of operational capacity, of which 7,856 MW was clean energy. It added 968 MW of renewable capacity during the year.

Tata Power reported FY26 revenue of Rs 63,681 crore and profit after tax (before exceptional items) of Rs 5,212 crore. Its renewable portfolio, including projects under development, stood at 11,638 MW.

Unlike several of the group’s newer ventures, Tata Power is already profitable while continuing to invest in future capacity.

Air India: The biggest drag on earnings

The most challenging turnaround under Chandrasekaran remains Air India.

Since its acquisition in 2022 and subsequent merger with Vistara, the airline has undergone a large-scale restructuring. However, financial performance has deteriorated in the short term.

Air India and Air India Express together reported a combined net loss of Rs 22,238 crore in FY26, more than double the previous year’s loss of Rs 10,859 crore. Combined revenue also fell nearly 9 per cent to Rs 71,870 crore.

Air India alone posted a loss of Rs 15,368 crore, while Air India Express reported a loss of Rs 6,767 crore.

Chandrasekaran has repeatedly said the airline’s turnaround will take five to 10 years, citing legacy systems, fleet constraints and supply-chain issues.

Tata Digital: Scale without profitability

Tata Digital has also remained a significant drain on earnings.

The company, which anchors the Tata Neu ecosystem and includes BigBasket, reported a widened loss of Rs 4,974 crore in FY26 compared to Rs 4,610 crore in FY25, even as revenue rose to Rs 35,990 crore.

The business has been forced to adapt to rapid shifts in India’s e-commerce landscape, particularly the rise of quick commerce, where profitability remains elusive even for larger players.

Electronics and batteries: Strategic bets still early

Tata’s push into semiconductors, electronics manufacturing and battery production is among its most ambitious long-term plays.

Tata Electronics is developing a semiconductor fabrication facility in Gujarat and expanding its manufacturing footprint, while Agratas is building battery capabilities for electric mobility.

Both remain in heavy investment phases.

Tata Electronics reported a loss of Rs 1,611 crore in FY26, while Agratas posted a loss of Rs 1,101 crore.

These losses are not unexpected given the stage of development, but they underline the scale of capital commitment required in these sectors.

Tata Capital listing adds to financial flexibility

A key financial development during the latter part of Chandrasekaran’s tenure was the listing of Tata Capital.

The IPO helped unlock value for Tata Sons and contributed to gains from investment sales in FY26. For the holding company, which depends heavily on dividends and portfolio returns, such monetisation provides additional flexibility to fund new ventures.