Tata Sons reported higher standalone revenue and profit for the year ended March 2026, helped by investment gains, even as losses at Air India and other newer businesses weighed heavily on its consolidated results.

Standalone profit after tax rose 21.8% to ₹31,961 crore, or about $3.4 billion, while revenue increased 9.1% to ₹42,367 crore, or $4.5 billion, according to the holding company’s annual report released on Monday, 27 July.

The board recommended a final dividend of ₹110,717 per share, subject to shareholder approval.

Part of the profit increase came from ₹6,531 crore in gains on the sale of investments and other securities, up from ₹72 crore a year earlier. Tata Sons sold 230 million shares in Tata Capital during the financial-services company’s initial public offering, reducing the group’s holding to 81.32% from 95.04%.

The figures were weaker on a consolidated basis, which includes controlled subsidiaries such as Air India, Tata Digital and Tata Electronics. Consolidated revenue rose 17% to ₹6.61 trillion, or about $70.5 billion, but profit after tax fell 35.1% to ₹26,616 crore from ₹40,985 crore.

Profit before exceptional items and tax declined 10% to ₹49,948 crore. Exceptional charges totaled ₹5,368 crore, compared with a gain of ₹569 crore in the previous year.

At the broader group level, which includes listed companies that are not fully consolidated into Tata Sons, aggregate revenue increased 7.8% to ₹16.24 trillion and profit after tax rose 51.9% to ₹1.71 lakh crore. Tata Sons said group revenue was now 2.1 times its FY20 level and profit 5.4 times higher.

Air India turnaround stretches out

Air India and its low-cost subsidiary Air India Express recorded combined losses of ₹22,135 crore, or about $2.32 billion, during FY26.

Air India reported a loss after tax of ₹15,368 crore, while Air India Express lost ₹6,767 crore. Air India’s revenue declined to ₹71,870 crore from ₹78,636 crore a year earlier, according to the report.

Chairman N. Chandrasekaran said the airline’s transformation should now be viewed as a five-to-10-year undertaking because of aircraft and component shortages, the need to replace legacy systems and the time required to train technical and airline staff.

The extended timeline goes beyond the five-year Vihaan.AI transformation program launched in 2022, shortly after Tata regained control of the carrier.

Air India faced airspace closures, higher fuel prices linked to conflict in the Middle East, foreign-exchange volatility and disruption following the crash of Flight AI171 during the year. Chandrasekaran said narrow-body aircraft used on domestic routes had been refurbished, while upgrades to the wide-body fleet were expected to be completed by the end of FY28.

The airline’s net promoter score improved to 42 in June 2026 from minus 35 in FY23, according to Tata Sons. Chandrasekaran said Air India also recorded the best on-time arrival performance among Indian carriers that month.

The management transition adds another complication. Air India Chief Executive Campbell Wilson is due to step down on 30 September, and the company has not named a successor.

Singapore Airlines, which holds 25.1% of Air India, separately reported its first quarterly loss since 2022 on Tuesday, 28 July. It posted a S$75.8 million, or $58.7 million, net loss for the three months ended June, compared with a S$186.1 million profit a year earlier. Its share of Air India’s loss was S$42 million, while higher jet-fuel costs also hurt earnings.

New businesses absorb more capital

Air India, Tata Digital and Tata Electronics generated combined losses of about ₹28,823 crore in FY26.

Tata Digital reported a ₹4,974 crore loss at the broader business level cited by Tata Sons, as the group adjusted its strategy for Tata Neu and BigBasket. The report said Tata Neu would concentrate more heavily on financial services and customer loyalty, while BigBasket continued adapting to the shift toward quick commerce.

Tata Electronics grew rapidly enough to become the group’s fourth-largest company by revenue within four years. Revenue reached ₹1.31 trillion, and the company achieved operating break-even. However, losses continued in the semiconductor manufacturing and assembly businesses as plants remained under construction.

Tata Sons said the electronics company employed 86,466 people, nearly two-thirds of them women. It is building a semiconductor fabrication plant at Dholera in Gujarat and an assembly and testing facility in Assam.

Among established businesses, Tata Steel recorded domestic deliveries of 22.5 million tonnes, Tata Power posted a record ₹5,118 crore profit and Indian Hotels reported its highest annual profit of ₹2,247 crore. Tata AutoComp’s revenue increased 70% to ₹22,266 crore, while profit rose 48.4% to ₹1,091 crore.

Jaguar Land Rover, however, lost five weeks of production following a cyberattack during the second quarter. Tata Sons said output had returned to near-normal levels by the end of the financial year.

Tata Sons received ₹28,291 crore in dividends from Tata Consultancy Services, 12% less than the previous year. TCS remains the holding company’s principal source of cash for dividends, debt servicing and investment in newer businesses.