The board of Tata Sons, the principal holding company of the $150-billion Tata Group, is scheduled to convene on February 24 to deliberate on the conglomerate’s investment roadmap for fiscal 2027.
Citing people familiar with the development, The Financial Express reported that the agenda will include capital allocation towards artificial intelligence (AI), semiconductors, aviation and the group’s digital commerce arm, Tata Digital.
The meeting assumes significance at a time when the group is balancing legacy strengths with new-age bets, while navigating global economic volatility and rapid technological shifts.
Air India Seeks Fresh Capital
One of the key matters expected to come up for discussion is a proposed capital infusion into Air India. The airline has reportedly sought around Rs 10,000 crore from its owners, Tata Sons and Singapore Airlines, to support its ongoing transformation.
The request comes as Air India continues to modernise its fleet, expand international routes and integrate operations following its return to the Tata fold. Aviation remains a capital-intensive business, and sustained investment is considered essential to compete with established global carriers and fast-growing regional rivals.
In addition to aviation funding, Tata Digital is also expected to require further financial backing. The conglomerate has been stepping up investments in its consumer-facing ventures as it seeks to strengthen its position in India’s highly competitive online retail market.
Capital Allocation In A Changing Tech Landscape
Beyond approving budgets for the upcoming financial year, the board is likely to examine how advances in artificial intelligence are reshaping the operating environment for group companies.
Particular focus is expected to be placed on Tata Consultancy Services (TCS), India’s largest software exporter and the most valuable asset in the Tata portfolio. Shares of TCS have declined about 16.5 per cent since the beginning of the year, reflecting investor concerns over the potential disruption AI could pose to traditional IT services.
Despite recent stock performance pressures, TCS remains central to Tata Sons’ financial stability. The holding company relies significantly on dividend payouts from TCS to fund new investments across emerging sectors.
Directors are expected to evaluate how TCS is positioning itself to address AI-driven opportunities while mitigating associated risks. The technology shift is viewed both as a challenge and a potential growth engine for IT services companies.
Big Bets On Infrastructure And Semiconductors
The Tata Group has already signalled ambitious expansion plans across multiple sectors. Among its most prominent announcements is a proposed $11 billion innovation city project near the upcoming Navi Mumbai International Airport.
The conglomerate has also unveiled semiconductor manufacturing initiatives in Gujarat and Assam. These projects align with India’s broader push to build a domestic chip manufacturing ecosystem and reduce reliance on imports.
Semiconductors represent a strategic priority for the group, not only from a commercial standpoint but also in support of national industrial policy objectives. The board’s upcoming discussions are likely to assess progress and future capital requirements in this space.
Leadership Continuity On The Agenda
The meeting is also expected to address governance matters, including a proposal to grant Chairman N Chandrasekaran a third term. The nomination has reportedly received backing from Tata Trusts, which holds a 66 per cent stake in Tata Sons, and is anticipated to be approved at the meeting.
Leadership continuity could be viewed as critical at a time when the conglomerate is undertaking large-scale investments across sectors ranging from aviation to advanced manufacturing and digital commerce.
Tata Digital, which operates the Tata Neu super-app, continues to compete against both domestic and global e-commerce players in India’s crowded online marketplace.
