Tata Sons chair Chandrasekaran refuses FY26 raise as group profit slides 17%
N Chandrasekaran has declined an FY26 pay hike at Tata Sons after FY25 net profit fell 17% to Rs 28,898 crore despite revenue climbing 24% to Rs 5.92 lakh crore. Internal concerns center on capital allocation and weak profitability at new ventures including Air India and Tata Electronics, with TCS still carrying 43% of group profit.
What happened
Tata Sons chairman N Chandrasekaran has declined an FY26 pay hike amid internal concerns over capital allocation and profitability of new ventures. FY25 net
Key facts
- FY25 revenue Rs 5.92 lakh crore (+24%)
- FY25 net profit Rs 28,898 crore (-17%)
- Chandrasekaran FY25 pay Rs 155.8 crore (+15%)
- salary Rs 15.1 crore
- commission Rs 140.7 crore
- TCS = 43% of group net profit
Why this matters
Tata's profitability strain at Air India and Tata Electronics could reshape M&A appetite toward bolt-ons that accelerate path-to-profit rather than further capex-heavy platform builds.