Chandrasekaran spoke at an off-site event in Dubai over the weekend that brought together about 650 top Tata Group executives, urging the $165 billion group of companies to quickly adopt AI and technology, warning that resistance to technological change could jeopardize its future. He stressed the importance of focusing on domestic growth and warned against distraction or hasty decisions on the geopolitical landscape, especially given the mutual tariffs in the United States.
Tata’s son declined to comment.
In fiscal 2025, ended on March 31, it was not a strong year for the group’s growth, especially compared with the solid performance in fiscal 24. According to Chandrasekaran, the group has a unique position in the growth opportunities in the Indian market where GDP growth remains strong.
Aarthi Subramanian, group chief digital officer, and the team at Tata Consultancy Services have published the huge growth potential that AI can unlock. Tata Trust President Noel Tata and his three children, Neville, Neville, Leah and Maya, also attended the meeting.
Companies such as Tata Motors, Tata Consumers, top group companies such as new businesses such as Tata Steel, Trent and Tata Digital gave speeches on growth plans. After outstanding performance in fiscal 24, Tata Group reversed its fate in fiscal 25, with its stock market and operating momentum showing signs of fatigue. The total market capitalization of its 25 companies fell by 8.4%, or Rs 26 crore, to Rs 27.8 crore, even though Nifty grew 5.2% in fiscal 25, even if Nifty rose 5.2%. The group’s three most valuable companies – TCS, Titan and Tata Motors Have, performed poorly, down 7%, 19% and 32% respectively. During the year, 15 of the 25 Tata stocks ended in red.
Losses in stocks such as Tata Communications, Tata ilxsi, Tata Tech and Tata TV Services were particularly noticeable, with these stocks falling to 20% to 33%. The sell-off has sparked concerns about valuations, limited visibility of near-term earnings, and the impact of struggling sectors such as global technology, consumer and automobiles, as appropriate. The group’s 25 listed companies aggregated over Rs 9 billion of its market cap in fiscal 24, totaling Rs 30,045 crore, an increase of 42%, while Nifty’s earnings were 26%.
Despite the market crash, the group’s financial performance remains relatively stable. In the nine months ended December 2024, the total sales of the 25 companies increased by 4.3% from the same period last year.
