Tata Group Invests ₹1,000 Crore in Croma for Growth and Efficiency

Tata Group has strengthened its retail presence by infusing ₹1,000 crore into Croma, its consumer electronics and smartphone retail arm, during 2025, as per news reports. The investment highlights the conglomerate’s commitment to reshaping Croma’s operations, even as the chain continues to face market challenges and rising losses.

Capital Infusion and Performance Trends

Infiniti Retail, which operates Croma under Tata Digital, disclosed the fresh capital injection in its latest filings with the corporate affairs ministry. The company also expanded its authorised share capital by ₹2,000 crore to ₹6,000 crore, leaving scope for more funding.

In FY25, the retailer’s net loss widened to ₹1,091 crore from ₹986 crore in the previous year. However, total income showed an improvement of 6.7% to ₹19,228 crore. Croma noted in its filings: “FY25 was a year of transformation for Croma. 

Despite intense regional competition and soft market demand, the company has registered growth with enhanced margins.” The company attributed this to cost reductions in marketing and supply chain, which supported an improvement in EBITDA.

Strategic Reset and Market Expansion

Infiniti Retail has introduced a strategy titled “get fit & get fast,” focusing on profitability over rapid expansion. This includes a business model reset, reduced overheads, and sharper operating efficiency. 

Croma expanded faster than the market with 13% store growth in FY25, reaching 564 outlets nationwide. While same-store sales remained flat due to weak customer traffic and online revenue dropped by 36%, the retailer gained market share. Its partnership with Tata-owned BigBasket for quick commerce delivery of electronics in select cities has also delivered promising early results.

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Conclusion

Croma’s FY25 results reflect a phase of restructuring where the focus has shifted from expansion-driven growth to margin-led sustainability. Backed by Tata Digital’s capital and strategic support, the year ahead will be crucial to assess whether its new direction can establish durable profitability in India’s competitive electronics market.

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