2 weeks ago
Air India, Tata Digital losses dent Chandrasekaran's robust Tata armour
Tata Group owns many big companies in India.
Every year, these companies tell everyone how much money they made or lost.
This year, the reports were mixed.
Air India, the airline owned by Tata, lost much more money than last year.
Its losses more than doubled.
One big reason was a sad plane crash in June 2025 where 260 people died.
The airline also had to deal with closed airspace and higher fuel prices because of fighting in West Asia.
Another Tata company, Tata Digital, also lost a lot of money.
But its shopping app, Tata Neu, is doing well and selling a huge amount of products.
Tata Electronics, a company that makes phones and computer chips, finally stopped losing money on its operations.
It is even building India's first big chip factory in Gujarat.
Air India says becoming a great airline again will take five to ten years.
So Tata Group has some companies doing very well and others that still need time to improve.
Air India's losses more than doubled to ₹22,238.22 crore in FY26 from ₹10,858.82 crore in FY25.
The airline faced three external headwinds: airspace closures, West Asia conflict-driven fuel price hikes and forex fluctuations, and the June 12, 2025 crash of AI171 that killed 260 people.
Tata Digital reported a loss of ₹4,974 crore in FY26, though Tata Neu achieved a gross merchandise value of ₹46,515 crore within four years of launch.
Tata Electronics broke even on operating profit and became the fourth-largest Tata Group company by revenue of ₹1,31,082 crore.
Air India expects its transformation to take five to ten years due to supply chain disruptions, legacy systems, and the need to overhaul its culture and fleet.
- Who
- Tata Group companies including Air India, Tata Digital, and Tata Electronics under Tata Sons Chairman N Chandrasekaran.
- What
- FY26 annual results showed Air India's losses doubled to ₹22,238.22 crore and Tata Digital lost ₹4,974 crore, while Tata Electronics broke even on operating profit.
- Where
- India.
- When
- Fiscal year ending March 31, 2026.
- Why
- Air India faced airspace closures, West Asia conflict-driven fuel price hikes, foreign exchange fluctuations, and the June 12, 2025 crash of AI171 that killed 260 people.
Key facts
- Air India FY26 loss
- ₹22,238.22 crore
- Air India FY25 loss
- ₹10,858.82 crore
- Tata Digital FY26 loss
- ₹4,974 crore
- Tata Electronics revenue
- ₹1,31,082 crore
- Tata Neu GMV
- ₹46,515 crore
- Croma GMV
- ₹25,539 crore
- AI171 crash
- June 12, 2025; 260 deaths
- Tata Electronics phone output
- 12% of phones made in India in 2025
Quotes
Air India company spokesperson
Representative of Air India
“"Few businesses are as vulnerable to war and fuel pressures as aviation. This year, Air India faced three external headwinds. Air space closures; West Asia conflict-driven fuel price hikes and foreign exchange fluctuations; and the crash of AI171 made it the most challenging year for Air India. At every stage, Air India’s teams responded with resilience and adaptability," the company said.”
businesstoday.in










