Tata group earnings mirror India Inc show as FY25 profit dips marginally

The combined consolidated adjusted net profit of listed Tata group fell 0.1 per cent Year-on-Year to Rs 90,547 crore in FY25 from Rs 90,630 crore in the previous financial year

Companies of the Tata group, the country’s largest conglomerate, are not untouched by the slowdown in corporate revenue and earnings. The combined net profit (adjusted for exceptional gains and losses) of the group’s listed companies was down marginally in FY25 compared to strong double-digit growth in FY24 while their combined net sales grew at its slowest pace in the last four years. 

The combined consolidated adjusted net profit of listed Tata group firms fell 0.1 per cent year-on-year (Y-o-Y) to ₹90,547 crore in FY25 from ₹90,630 crore in the previous financial year. The combined net sales were up 4 per cent Y-o-Y to ₹11.43 trillion in FY25, growing at the slowest pace in the last four years. 

For comparison, the group’s combined net profit (adjusted) had grown by 36 per cent in FY24 while the companies’ combined net sales were up 12 per cent Y-o-Y in FY24. (See the adjoining charts.) 

The group’s combined reported net profit (including exceptional gains and losses) was up 11.2 per cent to ₹95,157 crore in FY25 from ₹85,607 crore in FY24. Combined other income was up 22 per cent to ₹23,451 crore in FY25. 

   

The analysis is based on the interim annual results of 20 listed Tata group companies excluding their listed subsidiaries.

The fall in group earnings was led by Tata Motors, while Tata Steel was the biggest laggard on revenue. Tata Motors’ consolidated net profit was down 27.9 per cent Y-o-Y to ₹23,680 crore in FY25 from ₹32,821 crore in the previous year. The automaker also lagged behind in top line growth and its net sales grew just 1.3 per cent in FY25, a sharp slowdown from 25.8 per cent Y-o-Y growth in FY24. The automaker saw consolidated net sales of ₹4.37 trillion in FY25, up from ₹4.31 trillion. 

Tata Motors is the largest company in the group in revenue and second-largest in profit, behind Tata Consultancy Services (TCS). 

Tata Steel, on the other, reported a 4.6 per cent Y-o-Y decline in net sales in FY25 — its third consecutive year of revenue contraction. The steel maker’s consolidated net sales fell to ₹2.17 trillion in FY25 from a record high of ₹2.42 trillion in FY22.  However, Tata Steel swung to a net profit of ₹3,743 crore in FY25 from a net loss of ₹1,914 crore in FY24. 

Thanks to a poor showing by Tata Motors and Tata Steel, TCS’ contribution to the group earnings and revenue once again increased in FY25, reversing the trend of a decline in the previous two years.  

TCS accounted for 53.6 per cent of the group’s combined net profit (adjusted for exceptional gains and losses), up from its 51.4 per cent share in FY24. Similarly, it accounted for 22.3 per cent of the group’s combined net sales in FY25, up from 21.9 per cent in FY24. 

  TCS’ adjusted consolidated net profit was up 4.1 per cent Y-o-Y to ₹48,553 crore in FY25, growing at the slowest pace in the last four years. 

The company’s consolidated net sales were up 6 per cent Y-o-Y to ₹2.55 trillion in FY25, growing at the slowest pace since FY21. 

Among other major group companies, Titan Company, Tata Communications, Tata Consumer, and Tata Chemicals also reported a Y-o-Y decline in their consolidated net profit in FY25 while Tata Power, Indian Hotels and Voltas reported Y-o-Y growth in net profit. 

In all, 12 of the 20 listed Tata group companies in the Business Standard sample reported a Y-o-Y decline in earnings. This includes Tata Tele (Maharashtra), whose net losses increased further to ₹1,275 crore in FY25 while its net sales were nearly flat and were up just 0.3 per cent Y-o-Y in FY25. It must be noted that 80 per cent of group revenue in FY25 came from Tata Motors, TCS, and Tata Steel, while 80 per cent of group net profit was contributed by TCS and Tata Motors.  

Among smaller group companies, Tejas Networks and Voltas were the top performers in FY25 with 609 per cent, 234 per cent and 48.2 per cent Y-o-Y growth, respectively, in their consolidated net profit in FY25. 

Similarly, these companies’ net sales were up 265 per cent, 23.5 per cent and 38.5 per cent, respectively, in FY25.