Tata Sons Chairman Calls For Financial Discipline As FY25 Profit Slips; Here's What He Said

Tata Sons, the holding company for the Tata Group, posted a consolidated profit of Rs 28,898.5 crore in FY25, marking a decline from Rs 34,624.9 crore in the previous year

Tata Sons Chairman N. Chandrasekaran

Source : ANI

Tata Sons Chairman N. Chandrasekaran, in his message to shareholders in the company’s 2024-25 annual report, underlined the importance of financial discipline as the group continues to expand into new and emerging sectors. He cautioned that mistakes can serve as costly diversions from the group's overarching mission and must be avoided through robust and predictable execution. Tata Sons, the holding company for the Tata Group, posted a consolidated profit of Rs 28,898.5 crore in FY25, marking a decline from Rs 34,624.9 crore in the previous year. Despite the drop in profit, total consolidated revenue rose significantly to Rs 5,92,673.56 crore compared to Rs 4,76,725.18 crore in FY24.

Chandrasekaran reiterated his intention to maintain stability within core businesses while enabling bold ventures in sunrise industries. “Even as parts of the Tata Group drive unprecedented ambition in new industries, I stay committed to driving predictability in the rest of our portfolio,” he stated. The strategy reflects a dual focus on innovation and operational steadiness.

On a standalone basis, Tata Sons recorded revenue of Rs 38,834.58 crore in FY25, down from Rs 43,893 crore, while standalone profit also dropped to Rs 26,231.74 crore from Rs 34,653.98 crore in FY24.

Strategic Vision Rooted In National Aspiration

Linking the group's trajectory with India’s broader ambitions, Chandrasekaran said, “Be it steel or software, cars or hotels, our incredibly diverse portfolio of companies has brought India's aspirations to reality.”

Admitting that the journey won’t be without challenges, he said, “Ambition must come with an honest realisation of the mountains we need to climb. I believe that our job is to run our own marathon, not be distracted by someone else's sprint.” He emphasized that scale is not an end goal but the outcome of consistent execution.

Semiconductors And Renewables: Steady And Long-Term Focus

Outlining the group’s vision in semiconductors, Chandrasekaran said, “We have chosen to start our chip journey at the 28nm node—it is a stable node. We will need to build from this foundation and move steadily towards where the cutting-edge of chip manufacturing is today. That, I must tell you, will take several years of serious work.” The aim, he added, is not just capacity building but also delivering customer-specific chip innovations.

He further stressed the importance of stable offtake agreements in the group’s battery and renewable energy businesses, asserting, “Our capacity creation must come with steady and guaranteed offtake, which is the foundation of good financial returns.”

Preparedness For The Future

Reflecting on the last five years, Chandrasekaran noted that Tata Sons has invested Rs 1 lakh crore in its companies, while the group overall has undertaken capex and investments exceeding Rs 4.5 lakh crore. The group’s priority, he added, has been “fitness first, velocity next.”

He emphasized, “It is my deep conviction that we must be fit to perform. To do that, we must be honest that some decisions that might have appeared ideal when they were taken may have aged poorly with time and changing economic conditions.”

Addressing the broader context of technological disruption, Chandrasekaran said, “Artificial Intelligence promises to change everything, again, much as the internet did. For our nation, more than others, this moment of flux can be a catalyst for accelerated progress.”

Highlighting India’s potential, he said, “This is a generational opportunity for growth and transformation... We must be relentless in both optimism and disciplined execution.”

Dispelling any notion of India lagging globally, he concluded, “We are not. Before us lies an opportunity to leapfrog decades and build a new future. Each business we choose to focus on lives this aspiration every day.”