Tata Sons profit falls due to lower other income, chairman Chandra earns Rs 156 crore, among highest-paid chiefs

MUMBAI: Tata Sons’ profit and revenue were affected in FY25 due to a sharp drop in non-operating income. Profit fell 24% to Rs 26,232 crore, and revenue declined 12% to Rs 38,835 crore.The revenue from core operations, coming from dividends, interest, and brand royalty fees, grew 62% to Rs 38,710 crore.Other income, which mainly consists of gains from TCS share buybacks, plummeted 99% to Rs 125 crore in FY25 from a significant Rs 20,036 crore in FY24.When adding up both revenue from core operations and other income, Tata Sons’ total revenue was Rs 38,835 crore in FY25. In its annual report, Tata Sons explained that FY24’s total revenue included a profit of Rs 9,376 crore from selling investments. Expenses fell nearly 30% to Rs 1,946 crore. At the same time, cash and bank balances rose 61%, reaching Rs 1,866 crore compared to Rs 1,154 crore in FY24. The company also said in its report that it paid off all its borrowings during FY25, a move that will help Tata Sons remain private. There are now no preference shares on its books, unlike in FY24 when there were preference shares worth Rs 262 crore.In FY24, Tata Sons applied to the Reserve Bank of India (RBI) for voluntary surrender of its registration as a core investment company (CIC) and to continue as an ‘unregistered CIC’.

The application was submitted after the RBI introduced rules requiring CICs like Tata Sons to list themselves on stock exchanges. In its FY25 report, Tata Sons mentioned that the banking regulator is still reviewing its request.

Dividend and chairman remuneration

Although profits fell, Tata Sons increased dividends for shareholders and raised the compensation for its chairman, N Chandrasekaran. The dividend per share is Rs 64,900, almost twice the Rs 35,000 given in FY24.

Tata Trusts, owning about 66% of Tata Sons, will receive about Rs 1,615 crore, while the Shapoorji Pallonji Group, holding about 18%, will get Rs 482 crore. Chandrasekaran’s compensation rose 15%, reaching Rs 156 crore in FY25, making him one of the highest-paid professional chieftains in India Inc, earning over Rs 150 crore annually. His remuneration in FY24 was Rs 135 crore. Since taking on the role of Tata Sons chairman in February 2017, Chandrasekaran's pay has significantly grown, especially compared to his initial compensation of Rs 55 crore in FY18.In FY25, Chandrasekaran also earned around Rs 20 lakh in sitting fees from seven Tata-listed entities he chairs. He also owns stocks in these entities worth Rs 179 crore.CMS Info Systems’ vice-chairman Rajiv Kaul earned Rs 181 crore in FY24, Persistent Systems’ CEO Sandeep Kalra took home Rs 148 crore in FY25. Several executives are part of the Rs 100-crore remuneration club, including Bajaj Finance’s Rajeev Jain, who made Rs 102 crore in FY25.

Invests over Rs 21,500 crore in operating cos

Tata Sons, which had 323 subsidiaries as of March 31, 2025, invested Rs 21,591 crore in both new and existing businesses to help them grow and deleverage their balance sheets. Most of this amount, about 95%, went into unlisted companies. Only Rs 1,082 crore was invested in listed companies, mainly Tata Consumer Products. Among unlisted and new companies, Tata Digital received the largest funding, with Rs 3,960 crore. Air India was close behind, with Rs 3,225 crore. Tata Electronics got Rs 3,000 crore, while Panatone Finvest, which owns Tejas Networks, received Rs 1,500 crore. Agratas was also funded with Rs 1,149 crore. Older businesses also got funding. Tata AutoComp received Rs 2,122 crore. Tata Capital got Rs 1,432 crore before its IPO. Tata Projects received Rs 1,500 crore, and Tata International was given Rs 1,000 crore.