Tata Sons is facing a projected loss of up to ₹29,000 crore (approximately $3.5 billion USD) in FY26, a stark increase from an earlier estimate of ₹5,700 crore. The losses, which have already reached ₹21,700 crore in the first nine months of the fiscal year, are primarily driven by Air India, Tata Digital, Tata Electronics, and Tejas Networks. Air India alone is expected to contribute a staggering ₹20,000 crore in losses, significantly higher than the initial forecast of ₹2,000 crore. The airline has already recorded ₹15,000 crore in losses in the first nine months, compared to ₹11,000 crore in FY25.

Tata Digital, which includes brands like BigBasket and Tata 1mg, is projected to incur losses of over ₹5,000 crore in FY26. Analysts have pointed to execution issues and competition as factors leading to these losses, with BigBasket losing market visibility. Natarajan Chandrasekaran's leadership is under scrutiny, especially after the board's decision to defer his reappointment due to rising losses and execution gaps. A detailed turnaround plan is expected to be presented at the June board meeting, focusing on cost control and operational efficiency.