Mumbai: Three of Tata Group’s new unlisted companies—Air India, Tata Electronics Pvt. Ltd, and Tata Digital Pvt. Ltd—turned among the many conglomerate’s highest income contributors in 2024-25. However that got here at a price.
The three corporations contributed nearly ₹1.8 trillion to the group’s ₹15.3 trillion topline, however made a mixed lack of ₹15,500 crore, as per the most recent annual report of group holding firm Tata Sons.
By way of income contribution, these corporations had been among the many highest inside the diversified group, solely behind the large 3—Tata Motors Ltd, Tata Consultancy Companies Ltd, and Tata Metal Ltd, every of which makes upwards of ₹2 trillion in annual revenues.
Different huge earners inside the Tata Group are Dad energy what. Ltd and Titan Co. Ltd, which raked in over ₹60,000 every in income final fiscal 12 months.
Indian water was the most important lossmaker for the Tata Group in FY25, with ₹10,859 crore within the pink, adopted by Tata Digital, which made a lack of ₹4,610 crore. Tata Digital homes Tata Neu, the group’s tremendous app.
Tata Group made a web revenue of ₹1.13 trillion in FY25.
By way of income, Air India contributed ₹78,636 crore in FY25, whereas Tata Digital made ₹32,188 crore.
Tata Electronics was the intense spot among the many conglomerate’s new unlisted companies, with FY25 income of ₹66,601 crore and a comparatively smaller lack of ₹70 crore, setting the stage for a fast turnaround and revenue contributions to the group.
The electronics and semiconductors making unit of the Tata Group acquired Wistron’s Karnataka-based iPhone meeting unit in FY24, and in FY25 commenced iPhone meeting at a second facility in Tamil Nadu.
Tata Group formally acquired Air India in January 2022, whereas Tata Digital was included in 2019 and Tata Electronics the next 12 months.
Richer dividends, larger paychecks
Tata Sounds chair N. Chandrasekaran mentioned the group will focus on being match and prioritize monetary well being over speedy growth.
“It’s my deep conviction that we have to be (financially) match to carry out. To try this, we have to be trustworthy that some choices which may have appeared supreme after they had been taken might have aged poorly with time and altering financial situations,” he wrote in his letter to shareholders.
“In consequence, our mantra in the previous few years was “health first, velocity subsequent”. I’m proud to share that the Tata Group is match and prepared for the longer term,” he mentioned.
Between FY20 and FY25, Tata Group’s combination income almost doubled to ₹15.3 trillion, whereas web revenue greater than tripled to ₹1.1 trillion and leverage ratio halved to 0.7x. Return on fairness improved to 17.5% from 8.7%.
The improved monetary efficiency of the group additionally meant richer dividends for shareholders and better paychecks for executives. Tata Sons’ board beneficial a dividend of ₹2,623 crore in dividends to Tata Trusts and different shareholders in FY25, greater than double that within the earlier 12 months.
Compensation of Chandrasekaran swelled to ₹156 crore, of which ₹141 crore is fee, which shall be paid on the Tata Sons annual basic assembly on 14 August.
This makes him one of many highest-paid executives in India. Different extremely paid Indian trade executives embrace Ravi Kumar S., chief govt of Cognizant Know-how Options Corp. ( ₹186 crore), Pawan Munjal, CEO of Hero MotoCorp Ltd ( ₹109 crore), and Rajeev Jain of Bajaj Finance Ltd ( ₹102 crore).
Tata Sons shareholders embrace eight trusts, which maintain 65.9% of the shares and are collectively referred to as Tata Trusts; the SP Group, which holds 18.38%; Tata Group corporations; and members of the Tata household, together with Tata Trusts chairman Noel Tata, who holds a 1% stake.