Tata Sons chairman N Chandrasekaran’s decision not to seek reappointment, when his term ends in February 2027, came only six days before the holding company’s annual general meeting, which was expected to consider the matter. His announcement noted “the absence of unanimous support” for his extension, drawing attention to a fractured board. This decision brings an end to the uncertainty over his tenure at the helm of the group, which has been witnessing bitter internal conflicts for some time. Sharp differences of opinion had cropped up between Chandrasekaran and Noel Tata, chairman of Tata Trusts — which collectively holds a 66 per cent stake in Tata Sons — especially on the issue of losses incurred by some of the group companies. Disagreements have also come to light between the Tata trustees — Mehli Mistry has clashed with Noel Tata and other trustees. All of this has played out in a manner that has raised questions of governance and succession at the group. Going ahead, there will be challenges, of course — but there will also be the opening up of new possibilities.
The infighting has come at a critical time for the Tatas, when several issues need to be addressed. For one, the matter of listing Tata Sons. Tata Sons is in the RBI’s Upper Layer list of non-banking financial companies, which requires it to be listed on the exchanges. The listing is favoured by the Shapoorji Pallonji Group — it has a stake of 18.4 per cent in the entity — as that would allow it to address its financial challenges. But, this is not favoured by others, including Noel Tata. The application by Tata Sons to deregister as a core investment company is still under consideration. Alongside, there is increasing scrutiny over capital allocation across the group and the mounting losses of some of its businesses. For instance, Air India’s losses have soared to Rs 22,238 crore in 2025-26, up from Rs 10,859 crore the year before. There are also concerns over TCS, with the large-scale global adoption of AI.
Differences are bound to emerge in the running of a large conglomerate. These should be amicably resolved and not allowed to fester, as they seem to have done in this case. Under Chandrasekaran, the group not only acquired Air India, but also ventured into new areas such as semiconductors, electronics and electric vehicles. The next chief has the opportunity to chart a new course and take the group, whose trajectory has in a sense mirrored India’s economic path, to uncharted territory.
