Chandra to exit Tata Sons

N Chandrasekaran will step down as chairman of Tata Sons when his current term ends on February 20, 2027, wrapping up a nine-year tenure that transformed the scale and breadth of one of India’s most influential conglomerates but ended with a standoff with Tata Trusts Chairman Noel Tata over his reappointment.

“I have completed 40 years of professional life at the Tata Group. I am grateful for the immensely satisfying opportunity to contribute to this venerable institution,” Chandrasekaran, widely known as Chandra, said in a statement.

Chandrasekaran, 63, who has spent 40 years with the Tata Group, told the Tata Sons board on Wednesday that he would not offer himself for another term and asked the directors to decide on a successor soon to ensure an orderly transition. His decision comes after a six-month impasse over his reappointment and marks the end of what would have been an unprecedented third five-year term at the helm of Tata Sons.

Tata Sons is the principal investment holding company and promoter of the Tata Group, controlling more than 30 companies, including Tata Consultancy Services, Tata Motors and Air India. Tata Trusts collectively own about 66 per cent of Tata Sons, giving the philanthropic arm decisive influence over the group’s governance.

Chandra said the Sir Dorabji Tata Trust and Sir Ratan Tata Trust, which together hold 51.54 per cent of Tata Sons, had unanimously recommended extending his term by five years. The recommendation was recorded and backed by the Tata Sons Nomination and Remuneration Committee and board before being put to directors on February 24.

“However, the proposal was not carried through because one of the Board Members did not support it, and in the absence of unanimous support, I chose to defer the decision,” he said. “It has been 6 months since that Board meeting, and no resolution has been reached till date.”

While he did not name the board member, Noel Tata, who took over as chairman of Tata Trusts in 2024 following the death of Ratan Tata, had wanted certain assurances from Chandra before giving him another term.

Noel sought greater clarity on the group’s five-year strategic roadmap, the handling of losses at newer businesses and a way to provide an exit to the Shapoorji Pallonji Group without taking Tata Sons public, according to people familiar with the matter. He also sought Chandra’s position on the long-debated question of listing Tata Sons.

Chandra was reportedly unwilling to commit that Tata Sons would never be listed, making the potential IPO one of the key fault lines between the operating company and its controlling trusts. The two sides have also differed over board representation and capital allocation.

The board’s differences, however, did not completely paralyse its functioning. A Tata Sons meeting in May was described by people familiar with the deliberations as constructive, with Noel Tata focusing on businesses, including Air India and BigBasket, while Chandrasekaran led reviews of group companies.

But with no agreement even after reached after six months, Chandra said the uncertainty could no longer continue.

“Tata Sons is a very large institution and there are many strategic projects that are under critical stages of execution,” he said. “It is not only necessary to have a leader in place to lead the Group beyond February 2027, but also clarity on leadership is important for employees, investors, partners and other stakeholders.”

“Under these circumstances, earlier today, I have communicated to the Tata Sons Board, that I have decided not to offer myself for reappointment when my term ends on February 20, 2027. I have asked the Board to decide on the succession soon to ensure a proper transition.”

Chandrasekaran joined the Tata Group in 1987 as an intern at TCS, rose through the ranks to become the IT company’s chief executive in 2009 and was appointed Tata Sons chairman in 2017, succeeding Ratan Tata’s interim tenure after Cyrus Mistry’s ouster. He was the first non-Parsi chairman of Tata Sons and was credited with bringing stability to the group after the bruising 2016 boardroom battle.

Under him, the group expanded aggressively into aviation, electronics, semiconductors, batteries and digital commerce while strengthening its traditional technology, automotive and steel businesses. Tatas acquired Air India from the Government in 2022 and subsequently consolidated Air India, Vistara, Air India Express and AIX Connect into a major airline operation.

The scale-up has been reflected in the group’s financial footprint. Tata companies reported aggregate revenue of more than USD 180 billion in 2024-25, employed more than one million people, and the group’s 26 listed companies had a combined market capitalisation of more than USD 328 billion as of March 31, 2025.