N Chandrasekaran’s Tata Sons Tenure: Revenue Doubles, Profits Triple Amid Fresh Challenges for TCS and Tata Motors

When N Chandrasekaran took charge as Chairman of Tata Sons in 2017, the Tata Group was navigating a period of transition. Nearly nine years later, the $300 billion conglomerate stands transformed in scale and profitability, even as the current financial year presents fresh headwinds for key group companies such as TCS and Tata Motors.

Revenue Nearly Doubles, Profits Triple Since FY17​

Under Chandrasekaran’s leadership, Tata Group’s financial footprint has expanded significantly.

In FY17, the group’s revenue stood at just over ₹6 lakh crore. By FY25, that figure had surged to more than ₹11.5 lakh crore, nearly doubling over the period.

Profit growth has been even sharper. From around ₹35,000 crore nine years ago, the group’s consolidated profits have climbed to nearly ₹1 lakh crore in FY25, effectively tripling during his tenure.

This performance underscores a sustained expansion across sectors, including steel, hospitality, automobiles, and information technology.

Tata Steel and Indian Hotels Stage Turnaround​

Several group companies have seen dramatic reversals in fortunes.

In 2017, Tata Steel was reporting an annual loss of over ₹4,400 crore. By FY25, the company had turned profitable, posting earnings of over ₹3,400 crore.

Similarly, Indian Hotels Company, the hospitality arm of the group, has witnessed a sharp turnaround. From a ₹63 crore loss in FY17, the company reported a profit of more than ₹1,900 crore in FY25, reflecting a broader revival in the hospitality industry.

These shifts highlight the restructuring and operational focus implemented across group companies during this period.

The BigBasket Bet Faces Market Share Erosion​

Not every strategic move has delivered the intended results.

In 2021, Tata Digital acquired a majority stake in BigBasket for about ₹9,500 crore to strengthen its e commerce ambitions. However, intensifying competition from quick commerce platforms and other players has significantly impacted BigBasket’s position.

Over the past five years, its market share has fallen from nearly 50% to under 10%, underscoring the intensity of competition in the online grocery segment.

TCS: From Valuation Backbone to Relative Underperformance​

TCS has long been the crown jewel of the Tata Group. By 2020, it contributed nearly 75% of the group’s total valuation.

However, a combination of stronger performance by other group companies and TCS’s own relative underperformance has reduced its share of the group’s valuation to 36%.

Despite this shift, TCS remains the largest value contributor within the group, with a market capitalization of over ₹9 lakh crore. The Tata Group’s total market capitalization currently stands at ₹26 lakh crore.

The current financial year has been particularly challenging for TCS. In the first nine months, revenue growth has been limited to 3%, while profits have declined by more than 2%, reflecting pressures faced by the Indian IT sector in recent weeks.

Tata Motors: Cyberattack and Global Tariff Pressures​

Tata Motors is also navigating a difficult year.

A major cyberattack at JLR has added operational strain, while global tariff tensions have weighed on the broader automobile business.

In a significant structural move, Tata Motors has demerged its Commercial Vehicle business into a separate entity. Both businesses are now listed and trading independently on the stock exchanges.

Reappointment Discussions Deferred​

Amid these developments, discussions around Chandrasekaran’s reappointment have also come into focus.

Sources indicated that the Tata Sons board postponed discussions on his reappointment to its June meeting after disagreements surfaced, particularly over linking performance related conditions to the extension.

However, Chandrasekaran will continue as Chairman until February 2027, in line with an earlier approval.

As the group approaches the end of the current financial year, Chandrasekaran’s tenure reflects both a period of significant financial expansion and a phase marked by new structural and operational challenges across key businesses.