Tata Trusts Seeks Comprehensive Three-Year Strategy from Tata Sons Chairman Amid Efforts to Stem Losses and Drive Turnaround

Tata Trusts to Push Tata Sons on Future Strategy and Loss-Making Businesses

Ahead of an upcoming board meeting of Tata Sons, the Tata Trusts are likely to ask Tata Sons' executive management, headed by chairman N Chandrasekaran, to address key issues related to future strategy, loss-making businesses, and the listing of Tata Sons. The board meeting is expected to take place towards the end of the month, likely next week, while a separate board meeting is planned for June 12 to discuss annual accounts.

Tata Trust Chairman Noel Tata has sought a fresh three-year business roadmap from Chandrasekaran, including a detailed strategic plan for the group's key businesses and new ventures. This move comes amid growing concerns within sections of the Tata Trusts over mounting losses at some of the group's marquee ventures and the pace of capital deployment.

Losses at Air India and Digital Venture

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Among the issues flagged by Tata is the sharp increase in losses at Air India following the airline's acquisition. Air India reported a loss of about ₹10,859 crore in FY25, according to earlier disclosures and analyses of Tata Sons' annual report. For FY26, losses are expected to rise sharply, with estimates pegging the figure at around ₹28,000 crore, driven by fleet upgradation costs, integration expenses, and operational restructuring.

The pressure is not confined to aviation. Tata Sons' other newer ventures, such as Tata Digital, Tata Electronics, Tata Teleservices, and Tata Projects, together reported losses exceeding ₹25,000 crore in FY25, according to analyses of Tata Sons' financials. Tata Digital alone has seen significant cash burn over the past few years as the group pushes aggressively into e-commerce and digital commerce through platforms such as Tata Neu and BigBasket.

Comparison of Losses at Tata Sons' Ventures

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The people cited said Noel Tata has sought clarity from Chandrasekaran on the roadmap to reduce losses in these businesses and improve capital efficiency across the group's newer ventures and outline timelines within which these ventures are expected to move towards profitability.

Tata Sons Listing

Another key issue relates to the future status of Tata Sons as an unlisted entity. Tata wants Chandrasekaran to clearly articulate his views on whether Tata Sons should remain unlisted. The issue of a potential Tata Sons listing has emerged as a sensitive subject within the broader Tata ecosystem over the past few years, particularly after the Reserve Bank of India classified Tata Sons as an upper-layer NBFC before the company later surrendered its registration as a core investment company.

Emails sent by Moneycontrol to Tata Sons and Tata Trusts seeking comment remained unanswered till the time of publishing.

Tata Trusts Facing Regulatory Scrutiny

The developments also come at a time when the Tata Trusts are facing regulatory scrutiny. Earlier this month, Maharashtra Charity Commissioner Amogh S. Kaloti directed Tata Trusts to defer a scheduled board meeting pending an inquiry into complaints alleging violations of provisions of the Maharashtra Public Trusts Act relating to trustee composition.

The Tata Trusts collectively hold a majority stake in Tata Sons and remain the principal holding structure of the Tata group.