Tata Digital trims FY25 loss to Rs 828 crore even as revenue growth slows

Tata Digital trims FY25 loss to Rs 828 crore even as revenue growth slows

Tata Digital narrowed its net loss to Rs 828 crore in FY25, a 31 percent improvement over the previous year, even as revenue growth lost momentum. The company reported a 30 percent rise in operating income to Rs 547 crore for the year ended March 2025 — a significant slowdown from FY24, when revenue had more than doubled to Rs 421 crore. Losses in FY24 had stood at Rs 1,201 crore.

The Tata Sons-owned firm operates a portfolio of consumer-facing digital platforms including online grocer BigBasket, healthcare player Tata 1mg, electronics retailer Croma, fashion marketplace Tata Cliq, and its payments and loyalty app Tata Neu.

BigBasket, once seen as a steady growth engine in Tata’s digital mix, continues to feel the heat from aggressive quick commerce rivals. Its business entity, Supermarket Grocery, saw revenue decline seven percent to Rs 2,227 crore in FY25, even as net loss narrowed 20 percent to Rs 102 crore. In FY24, the unit had posted Rs 2,392 crore in revenue and a net loss of Rs 128 crore.

BigBasket is now implementing a multi-category quick commerce (MC/QC) strategy, where it leverages BigBasket’s existing dark stores, warehouses, and last-mile fleet to enable Tata-owned brands like Croma, Titan, 1mg, Qmin, and others to offer fast delivery under a unified platform. This model is aimed at improving asset utilisation and deepening integration across Tata’s consumer businesses, Moneycontrol reported earlier.

Tata 1mg Technologies delivered the strongest performance among the group’s digital brands. Revenue rose 36 percent to Rs 376 crore, while net profit tripled to Rs 65 crore, up from Rs 22 crore in FY24 when the business first turned profitable. The platform continues to benefit from increased demand for diagnostics and e-pharmacy services in urban markets.

Croma, operated via Infiniti Retail, remained the largest contributor to Tata Digital’s overall topline. It posted Rs 19,064 crore in revenue, up 7 percent from the previous year. However, cost pressures weighed on profitability, with net losses rising 11 percent to Rs 1,091 crore.

Tata Unistore, which runs fashion platform Tata Cliq, reported Rs 294 crore in revenue, a 19 percent increase from FY24. Losses reduced 20 percent to Rs 314 crore, as the platform focused on improving operational efficiency and narrowing its burn.

Meanwhile, Tata NeuPass, the group's cross-brand loyalty programme, continued to grow steadily. It ended FY25 with 140 million members, up from 116.4 million the year prior — a signal of deeper consumer integration across platforms, even as the group’s vision of a unified super app remains a work in progress.

Tata Sons infused an additional Rs 1,965 crore into Tata Digital during the year, bringing its total equity commitment to Rs 19,097 crore. The fresh infusion comes shortly after Moneycontrol exclusively reported that Tata Sons, the holding company at the helm of the $100-billion Tata group, is preparing to inject a crucial dose of capital worth $400 million into Tata Digital to support its long-term digital ambitions.

FY25 also marked another year of churn in the company’s leadership. Naveen Tahilyani, who was appointed CEO and MD in February 2024, exited abruptly in May 2025, just 15 months into the role, to take up an international assignment with Prudential Plc. His departure came on the heels of the exit of Pratik Pal, Tata Digital’s founding CEO, who had stepped down in February 2024 after struggling to transform Tata Neu into a cohesive consumer platform.

With losses narrowing and certain verticals like 1mg showing strong profitability, Tata Digital appears to be stabilising — but its ability to build a truly integrated digital ecosystem across commerce, loyalty, and services remains its biggest unresolved challenge.