These major cash losers were the chinks on Chandrasekaran’s robust armour

Chandrasekaran steps down: N Chandrasekaran’s successor, the new Tata Sons chairman, will have to deal with major cash losers. These companies are all part of their new businesses. These companies led to losses of over ₹27,000 crore last year, proving to be a chink in the otherwise robust and resilient armour of Chandrasekaran.

These companies are – Air India, Tata Digital and Tata Electronics – all unlisted companies under the group.

As per the company’s annual report, Air India’s losses mounted, in fact doubled, from the previous year. It reported losses of ₹22,238.22 crore as of March 31, 2026, as against ₹10,858.82  reported on March 31, 2025.

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Similarly, Tata Digital also reported a loss of ₹4,974 crore in FY26.

As for Tata Electronics, its operating profits broke even as it became the fourth-largest Tata Group company by revenue of ₹1,31,082 crore.

How the companies fared the year:

Air India: The airline had a harrowing year with the June 12, 2025 plane crash that led to the deaths of 260 individuals. “Few businesses are as vulnerable to war and fuel pressures as aviation. This year, Air India faced three external headwinds. Air space closures; West Asia conflict-driven fuel price hikes and foreign exchange fluctuations; and the crash of AI171 made it the most challenging year for Air India. At every stage, Air India’s teams responded with resilience and adaptability,” the company said.

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It also said that Air India's transformation is a long-term process expected to take five to ten years. This timeline is because of the challenges such as ongoing supply chain disruptions in key components, the need to modernise legacy systems, and the overhaul of the airline's culture and fleet, that it has considered.

Tata Digital: The Indian e-commerce space is witnessing a rapid change, and Tata Digital’s player in the game is BigBasket. It is taking on some of the biggest names in the space including Blinkit, Instamart and Zepto.

Even with losses of ₹4,974 crore, the company stated that Tata Digital has big ambitions and it is making steady progress. Moreover, Tata Neu has achieved a gross merchandise value of ₹46,515 crore within four years of its launch. Croma has recorded a GMV of ₹25,539 crore. Tata 1mg is recognised as India’s top-ranked e-pharma and e-diagnostics company. Tata Neu intends to expand its ecosystem across lending and insurance sectors.

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Tata Electronics: The company report stated that Tata Electronics manufactured 12 per cent of the total volume of phones made in India in 2025. It is also constructing India’s first high-volume fab in Gujarat, and packaged India’s first indigenous microprocessor. Not only its own ambitions, the government is also banking on the company as a semiconductor and electronics manufacturing hub too, on the bright side.