Tata Sons profit grows 21.8% in FY26, revenue tops ₹42,367 crore; Air India losses deepen

Published 27 July 2026 · finance

Tata Sons posted strong FY26 earnings on 27 July as the group profit surged and board recommended higher dividend for shareholders. Tata Sons reported a

Tata Sons posted strong FY26 earnings on 27 July as the group profit surged and board recommended higher dividend for shareholders. Tata Sons reported a sharp increase in profitability for the financial year ended March 2026, with profit after tax rising 21.8% year-on-year to ₹31,961 crore, while revenue grew 9.1% to ₹42,367 crore, reflecting sustained growth across the conglomerate despite challenges in its aviation business. Also Read | Tata Sons' Chandrasekaran says Air India turnaround could take a decade The figures were disclosed in the company's FY26 Annual Report, which also proposed a final dividend of ₹1,10,717 per share, subject to shareholder approval. Tata Group records robust financial growth in FY26 Quick answers to key questions • 5 QUESTIONS 1 What was Tata Sons' profit growth percentage in FY26? ⌵ Tata Sons reported a profit growth of 21.8% in FY26, with profit after tax reaching ₹31,961 crore. 2 Why did Air India's losses widen in FY26?

⌵ Air India's losses deepened in FY26 due to several challenges, including airspace closures, elevated fuel prices, foreign exchange volatility, and the AI171 crash. 3 How has Tata Electronics performed financially in FY26? ⌵ Tata Electronics became the fourth-largest Tata Group company by revenue, generating ₹1,31,082 crore in FY26, reflecting a rapid growth trajectory. 4 Should investors be concerned about the losses at Tata Sons' new businesses? ⌵ Investors should consider the business lifecycle of Tata Sons' new ventures, as initial losses may arise during the upfront investment phases before achieving sustainable profitability. 5 What challenges does Air India face in its turnaround plan? ⌵ Air India's turnaround plan is challenged by prolonged supply chain disruptions, fleet renewal needs, and external market pressures, making it a five- to ten-year process. In his letter to shareholders, Tata Sons Chairman N Chandrasekaran highlighted the group's overall financial performance, describing FY26 as another year of solid progress.

"For the Tata Group, 2026 overall has been a good year in terms of financial metrics. Tata Sons' revenue grew by 9.1% to ₹42,367 crore in FY26, while profits (after tax) grew 21.8% to ₹31,961 crore." Also Read | Tata CLiQ trims FY26 losses, but luxury identity remains its biggest hurdle At the group level, aggregate revenue increased 7.8% to ₹16.24 lakh crore, while profit after tax climbed 51.9% to ₹1.71 lakh crore. Chandrasekaran said the group's financial scale has expanded significantly over the past six years. Also Read | Tata Sons' new businesses sink deeper into red "The group's revenue is now 2.1 times and profits 5.4 times their FY20 levels," reflecting "sustained and significant turnaround efforts across the institution." Tata Electronics becomes the group's fourth-largest business The annual report underscored the rapid rise of Tata Electronics, which became the fourth-largest Tata Group company by revenue within just four years of its establishment.