Dear colleagues,

2025 has been a humbling year, unrelenting in its unpredictability. On a positive note, global growth has held steadier than expected amid rampant volatility. Fiscal expansion in Europe and higher than expected growth in China has helped, while inflation fell further, leading to easier financial conditions around the world.

India’s economic growth continues to stand out, underscoring that it is on the path to become the world’s third largest economy this decade.

While there was progress, heightened geopolitical tensions created more operational challenges, while technology advanced faster than regulators could keep up with. In a year full of difficult moments, the devastation wrought by the crash of Air India 171 affected us all. I want to thank you for the way in which so many of you from across the Group came together, in the midst of anguish, to help.

The Tata Group in 2025

For India and for the Tata Group, this era of uncertainty carries with it big strategic opportunies. Realignments create openings for youthful, dynamic economies like ours. For our Group, the coming years can be the most successful in our long history.

In last year’s letter I wrote of a coming golden age in Indian manufacturing. We have made great strides in advanced manufacturing, from the opening of precision manufacturing facilities to making iPhones to the final assembly of C-295 defence aircraft. Ten of these factories are new builds. We are building six more, including a semiconductor fab in Dholera and gigafactories in Sanand, Gujarat, and in Somerset, UK. All of our new factories are designed to be AI-first, which should drive better output quality and productivity.

We are doing this with a strong commitment to sustainability. For example, Tata Motors marked a meaningful milestone of 250,000 EV cars running on Indian roads, representing 66% of EVs in India. Tata Steel will also commence producing green steel in India in the coming year.

We achieved several other important milestones during the year. Tata Motors CV’s largest acquisition to date, in Iveco, positions us amongst the top four players globally. There was also Tata Capital’s successful public listing. Trent crossed the 1,000 stores milestone while Indian Hotels climbed above 600 sites.

Set against the unprecedented global tech acceleration were several big investments in AI. We announced the setting up of a 1GW AI data centre. TCS is making shifts toward becoming the world’s largest AI-led technology services company. We are also investing in building AI data models which will be rich in India-specific and industry-specific data.

Data, AI infrastructure and applications need to come together—they cannot be implemented in silos. This becomes a huge opportunity for us as a large Group, based on five pillars: 1) building an AI-led culture within our organisations; 2) redefining a Bridgital approach with a human + AI model across our work; 3) building a future-ready talent model, fluent in AI and new methods of working; 4) developing industry-tailored data, AI infra and applications; and 5) collaborations and partnerships across institutions. This is how we build resilience.

While technology has many benefits, it also creates significant vulnerabilities for large corporations. JLR’s cybersecurity attack this autumn emphasised that while growth is a focus, resilience has to be a long-term theme—whether it is from a value chain point of view or from a technological angle.

With heightened vulnerabilities, the question is not simply whether shocks will happen, it is also about how well we can recover from shocks.

Looking ahead

A few thoughts on what to prioritise in what looks likely to be another year of uncertainty and volatility:

The first is execution. When the world is in flux, those who execute well create their own stability. That means setting targets and meeting them, following through on commitments and building processes and systems that allow for consistent performance. This will be vital for all our companies in 2026.

The second is teamwork. Decades in the corporate world have taught me that teamwork beats talent every time. A group of skilled people working together will achieve far more than a solitary genius working alone. So, let’s support each other and collaborate broadly. Teamwork also makes work more enjoyable.

Third, we need to take risks. When volatility is constant, caution can be tempting. But half-measures rarely succeed in times like these. Boldness, meanwhile, has outsized payoffs. Let’s lift our sights to what will matter most in the years and decades ahead. And let’s be willing to invest in brilliant research and scholarship, even when it takes time to bear fruit.

Speaking of world class scholarship, earlier this month we announced the winners of our annual Tata Transformation Prize, which funds Indian scientists solving problems in three categories: sustainability, health and food security. Winners this year included projects on improving rice yields through genetic engineering, treating cancer with nanorobots and using specially engineered bacteria to produce safer chemicals for medicine, cosmetics and agriculture. The answer to so many of India’s challenges, and the surest way to fulfil our national potential, lies in unlocking the talent of the next generation.

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As I end the year, I keep coming back to some memorable encounters throughout 2025. Last month, I met a grandmother from a cyclone-hit village in Odisha who picked up a pencil for the first time through one of our literacy programmes. She now manages her own flower shop, travels on her own and supports her grandchildren.

From the other side of the country, a young woman from an agricultural family created a thriving startup to manage agricultural warehouse wastage using AI and drones. Not far from her, a student who participated in our CSR programmes is now pursuing her PhD in quantum physics at one of the top universities in the world. I see these stories echo across our own shop floors, where more women are playing more significant roles each day.

None of these stories of women stepping up and succeeding are new. But they always inspire. It is good to see these stories gathering pace. While there is more work to be done, these are the stories that fill us with hope and energy for the future.

Thank you once again for your hard work this year. I wish you and your families a 2026 full of health and happiness.

Yours,

Chandra

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