Stories
Tata Digital's Borrowings Soar 49% to ‘13,407 Crore; BigBasket Plugs Cash Deficit with ‘6,255 Crore Short-Term Funds
- •Tata Digital's consolidated borrowings surged by 48.5% to ‘13,407 crore in FY26, with current borrowings increasing by 67.4% to ‘11,265 crore.
- •BigBasket, a Tata Digital subsidiary, utilized ‘6,255.74 crore in short-term funds to cover a cash deficit resulting from operational losses.
- •The financial statements reveal that BigBasket's accumulated losses reached ‘10,000.49 crore by the end of FY26, while Tata Digital's total accumulated losses hit ‘21,325 crore.
- •Tata Digital's revenue from operations grew by 11.5% to ‘35,626 crore in FY26, but its net loss widened by 7.9% to ‘4,974 crore.
- •Concerns over Tata Digital's turnaround plans and rising debt were raised by Tata Trusts chairman Noel Tata at a Tata Sons board meeting, leading to a ‘2,970 crore infusion by Tata Sons into Tata Digital.
Key Questions Answered
Tata Digital's consolidated borrowings increased by 48.5 percent to reach Rs 13,407 crore in FY26, up from Rs 9,027 crore the previous year. Meanwhile, its revenue from operations grew by 11.5 percent to stand at Rs 35,626 crore during the same fiscal year.
BigBasket utilized Rs 6,255.74 crore in short-term funds to cover a cash deficit brought on by operational losses during FY26. The company's auditor noted that these short-term funds were not improperly redirected for long-term purposes.
During the February 24 Tata Sons board meeting, Noel Tata raised objections regarding Tata Digital's turnaround strategies, capital commitments, and expanding debt levels used to finance losses. He requested a comprehensive strategic roadmap from chairman N Chandrasekaran to address these growing liabilities.
