Tata Sons invested ₹1 trn in group firms in 5 years: N Chandrasekaran

Group firms undertook capex and investments of over Rs 4.5 trn, says chairman of conglomerate

Tata Sons has in five years invested  ₹1 trillion in its companies and it is  “fit and ready for the future”, Tata Sons Chairman N Chandrasekaran has said, listing semiconductors 

and digital services among core areas for growth. 

A multi-year strategy for financial and strategic discipline has put the group in a position of strength as it eyes growth in technology, manufacturing and consumer businesses, he said in the conglomerate’s annual report for FY25. Tata Sons is the unlisted holding company of the salt-to-software group. 

The group’s aggregate revenue has increased 1.9 times in five years; net profit jumped 3.6 times, and leverage ratio halved to 0.7 times. Return on equity doubled to 17.5 per cent from 8.7 per cent in FY20. “During this period, Tata Sons invested ₹1 trillion in group companies, while the companies themselves undertook capital expenditure and investments of over ₹4.5 trillion.” 

“It is my deep conviction that we must be fit to perform. Some decisions that might have appeared ideal when they were taken may have aged poorly with time and changing economic conditions. As a result, our mantra in the last few years was ‘fitness first, velocity next’. I am proud to share that the Tata group is fit and ready for the future,” said Chandrasekaran. 

“The transformation sets the stage for the group’s next phase of growth across core areas such as semiconductors, batteries, renewables and digital services. 

“At Tata Electronics, we are building a vertically integrated ecosystem for technology hardware and semiconductor manufacturing,” said Chandrasekaran, referring to the electronics manufacturing and semiconductors company. Tata Electronics employs over 65,000 people — 70 per cent of whom are women — and posted annual revenue of ₹66,000 crore in FY25. “In the capital-intensive world of technology hardware, I am told this is a good start,” he said. 

Among Tata Sons’ unlisted subsidiaries, Air India reported revenue of ₹78,636 crore and net loss of ₹10,859 crore in FY25. Tata Digital reported a revenue of ₹32,188 crore and a net loss of ₹4,600 crore. The company’s insurance joint ventures ended the year with profits. 

Agratas, the group’s battery company, is setting up 60 GWh of capacity in India and the UK. The company has research and development facilities in Bengaluru and Oxford – their work is crucial as EVs worldwide accounted for around 864 GWh of battery capacity in 2024. 

Tata Power has quadrupled its renewables capacity in eight years and leads in solar rooftop installations. It has built 6,700 EV charging stations across India. 

“Our mobile infrastructure business (Tata Communications) is now among only six global, end-to-end mobile wireless technology providers,” Chandrasekaran said, adding the company has developed an indigenous mobile network stack over the past three years.