Tata Sons chief N Chandrasekaran to group firms: Embrace AI or risk falling behind

Tata Electronics has emerged as one of many high ten companies inside the group when it comes to income, whereas a lot of the newer ventures are additionally exhibiting robust momentum in each progress and profitability, Tata Sons chairman N Chandrasekaran mentioned.

Talking at an offsite occasion held over the weekend in Dubai, which introduced collectively round 650 high Tata Group executives, Chandrasekaran urged the businesses within the $165 billion group to embrace AI and expertise swiftly, warning that resistance to technological change might jeopardize the way forward for their companies. He emphasised the significance of specializing in home progress and cautioned in opposition to being distracted or making hasty choices amid a unstable geopolitical panorama, significantly in gentle of the reciprocal US tariffs, in line with sources.

Tata Sons declined to remark.

Fiscal 2025 that ended March 31 was not a powerful 12 months for the group when it comes to progress, particularly in comparison with its sturdy efficiency in FY24. In response to Chandrasekaran, the group is uniquely positioned to capitalise on progress alternatives within the Indian market, the place GDP progress stays sturdy.

Group chief digital officer, Aarthi Subramanian, together with a workforce from Tata Consultancy Services, introduced the numerous progress potential that AI might unlock. Tata Belief chairman Noel Tata and his three youngsters, Neville, Leah and Maya who work in group firms, additionally attended the meet.

High group firms similar to Tata Motors, Tata Client, Tata Steel, Trent and newer companies similar to Tata Digital and Tata Electronics amongst others made shows on progress plans. After a stellar efficiency in FY24, the Tata Group has seen a reversal of fortunes in FY25, with each its inventory market and operational momentum exhibiting indicators of fatigue. The mixed market capitalisation of its 25 listed firms declined by 8.4%, or ₹2.6 lakh crore, to ₹27.80 lakh crore, even because the Nifty rose 5.2% in FY25. The group’s three most precious firms-TCS, Titan and Tata Motors-have led the underperformance, slipping 7%, 19%, and 32%, respectively. Fifteen out of the 25 Tata shares ended within the crimson throughout the 12 months.

Losses have been significantly sharp in shares similar to Tata Communications, Tata Elxsi, Tata Applied sciences and Tata Teleservices, which tumbled between 20% and 33%. The selloff has sparked issues over stretched valuations, restricted near-term earnings visibility, and publicity to struggling sectors like international tech, discretionary consumption and autos. The conglomerate’s 25 listed companies have collectively added greater than ₹9 lakh crores in market capitalisation in FY24, bringing the full to ₹30.45 lakh crore, up 42% in contrast with the Nifty’s achieve of 26%.

Regardless of the market rout, the group’s monetary efficiency remained comparatively regular. Combination gross sales for the 25 firms rose 4.3% throughout the 9 months ended December 2024 from a 12 months earlier.