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Tata Group

Building for 2047, Long-term growth

We are building for the India of 2047 so that, when she looks back, she finds that the foundations were laid well and in time
N Chandrasekaran, chairman of Tata Sons

Building for 2047

The Tata Group’s established businesses had a strong year to March 2026: revenue up 7.8% and profit up 51.9%. Its chairman used the annual report to argue for spending that profit on long bets: chips, telecoms, batteries, aviation, and defence. Most of them do not yet earn money. In August 2026 he said he would not seek another term, with his current one ending in February 2027.

1

Silicon

  1. WP 1.1First fabBuild India’s first high-volume chip fab in Dholera, Gujarat, with up to 50,000 wafers a month, in partnership with Powerchip of Taiwan.,
  2. WP 1.2Packaging and materialsDevelop advanced packaging, indigenous electronics and semiconductor solutions, and semiconductor materials.
  3. WP 1.3Whole value chainBecome the first integrated player across the electronics value chain.

Tata Electronics is four years old, the fourth-largest group company by revenue at ₹1,31,082 Cr, and has reached operating breakeven.

It made 12% of the phones made by the global leader in 2025, and packaged India’s first indigenous microprocessor.

The fab is planned to cost up to ₹91,000 Cr (about $11 billion).

Group profit was 5.4 times its FY20 level

The group’s aggregate revenue in FY26 was 2.1 times its FY20 level, at ₹16,24,030 Cr. Its profit after tax was 5.4 times, at ₹1,70,525 Cr. This profit pays for the group’s long bets.

1×2×3×4×5×6×1.0×1.9×2.1×1.0×3.5×5.4×FY20FY25FY26Profit after taxRevenue

Air India’s customer score rose from −35 to +42

The chairman calls Air India’s turnaround a five- to ten-year journey, and gives its customer score as the measure of progress.

-100-500+50+100FY23: -35June 2026: +42

Tata Electronics

₹66601 Cr

Revenue in FY26, from ₹66,601 Cr in FY25

Operating breakeven reached

Tata Digital

₹32188 Cr

Revenue in FY26, from ₹32,188 Cr in FY25

Loss of ₹4,974 Cr

Chairman N Chandrasekaran said he would not seek another term; his current term ends in February 2027.

  1. Agree the size of the long bets before you place them.

    The chairman’s letter describes the group’s largest commitments in its history. CNBC reports that his exit followed disagreement with Tata Trusts, which hold 66% of Tata Sons, over how much to spend on businesses that are losing money. We recommend agreeing how much of the year’s profit the long bets may take, and writing it down, before they start.

  2. Report each new bet with its loss.

    The letter gives Tata Electronics’ revenue and breakeven next to Tata Digital’s ₹4,974 Cr loss, and does not average them. We recommend showing every new business with its loss and its milestone together, so a reader can judge each on its own terms.

  3. Give a turnaround its real timescale, and a score to follow.

    The letter calls Air India’s turnaround a five- to ten-year journey, and reports a customer score that rose from −35 to +42 along the way. We recommend saying how long a hard change will take, and choosing one number that shows it working before the results arrive.

Sources

  1. 1. Tata Sons Private Limited (2026). Annual Report 2025-26. Tata Sons, chairman’s letter and group performance tables. tata.com
  2. 2. Tata Electronics (2024). Tata Group to build the nation’s first fab in Dholera. Press release, 29 February 2024. tata.com
  3. 3. CNBC (2026). Tata chairman’s shock exit move puts JLR owner’s bets on chips, iPhones and Air India at risk. CNBC, 14 August 2026. cnbc.com

Headwater is not connected with Tata Sons Private Limited. Tata, Air India, Titan, Taj, Tetley, and Jaguar Land Rover are trade marks of their owners. Updated 28 September 2026.

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