N Chandrasekaran presented a three-year plan to reduce losses in Tata Group’s newer businesses.
Air India and Tata Digital faced the sharpest scrutiny at the Tata Sons board meeting.
Tata Electronics emerged as a brighter spot after reaching break-even at the consolidated level.
Tata Sons chairman N Chandrasekaran on Tuesday outlined a three-year strategy to bring down losses at some of Tata Group’s newer businesses during Tata Sons board meeting in Mumbai. Businesses such as Air India, Tata Digital and Tata Electronics were reviewed as the group looks to improve performance and control rising cash burn.
The meeting, which lasted for over six hours at Bombay House, was attended by all Tata Sons directors along with heads of several new ventures. According to a report by The Times of India, Chandrasekaran was joined by executives from Tata Digital, Air India, Tata Electronics, Agratas and Tejas Networks during the discussions.
1 May 2026
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The report said the board reviewed FY26 performance and future business plans across the companies. Tata Electronics shared details of planned capital spending, while Air India presented its funding requirements for the coming years. However, people familiar with the matter told ToI that a financial overview presented at the meeting did not fully convince Noel Tata about the achievability of the targets.
Air India, Tata Digital Face Tough Questions
Most of the questions during the meeting came from Noel Tata and independent director Harish Manwani. Tata Trusts vice-chairman Venu Srinivasan also took part in the discussions.
Air India remained a major area of concern due to rising losses and the need for additional capital support. Reports have claimed that Air India recorded its highest-ever loss after being reacquired by the Tatas in January 2022. The airline reported a net loss of about ₹10,859 crore in FY25, according to Tata Sons’ annual report.
For FY26, Air India’s losses are projected to widen significantly, with several reports estimating the figure could reach nearly ₹28,000 crore. The expected rise is largely linked to aircraft upgrade expenses, integration-related costs and the airline’s ongoing restructuring exercise.
The airline is also expected to require fresh capital infusion. The ToI report added that Noel Tata indicated the matter could be discussed further at the June board meeting. Tata Digital also came under scrutiny over spending levels and the slow path to profitability at businesses such as BigBasket and Croma.
Tata Electronics Shows Progress
Tata Electronics was seen as one of the brighter spots during the review. According to ToI, the business has reached break-even at the consolidated level with government support, while revenue has crossed ₹1 lakh crore. The report added that Noel Tata sought a detailed business-wise break-up across semiconductor fabrication, mobile component manufacturing and OSAT operations.
The presentations on Agratas and Tejas Networks could not be completed due to time constraints. Chandrasekaran reportedly told the board that while full profitability across the newer ventures would take time, the group has a clear plan to steadily reduce losses over the next three years. Further discussions are expected at the Tata Sons board meeting scheduled for June 8.
