Tata Group stocks fall; TCS tumbles nearly 4%

Tata Group stocks fell on Wednesday, with TCS dropping nearly 4 per cent, after Tata Sons Chairman N Chandrasekaran said he will not seek reappointment when his current term ends on February 20, 2027.

Shares of Tata Consultancy Services fell 3.71 per cent, Tata Consumer Products edged lower by 2.44 per cent, Tata Elxsi declined 2.23 per cent, Tata Motors Passenger Vehicles dropped 1.92 per cent and Tata Steel slipped 1.57 per cent on the BSE.

The stock of Rallis India declined 0.95 per cent, Trent dipped 0.86 per cent, Tata Power skidded 0.53 per cent, Indian Hotels Company slipped 0.52 per cent, Tata Communications was down 0.37 per cent and Titan lost 0.18 per cent.

The combined market valuation of these firms eroded by Rs 45,615.67 crore, with TCS alone taking a hit of Rs 32,743.69 crore.

The 30-share BSE Sensex declined 187.90 points, or 0.24 per cent, to settle at 77,966.35. The 50-share NSE Nifty dipped 35.75 points, or 0.15 per cent, to end at 24,435.95.

“Tata Group stocks came under pressure following the Chairman’s exit, contributing to the underperformance of large-cap stocks relative to the broader market,” Vinod Nair, Head of Research, Geojit Investments Limited, said.

Tata Group stocks came under pressure, with TCS declining around 4 per cent following the resignation of Tata Sons Chairman N Chandrasekaran, Siddhartha Khemka — Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd, said.

N Chandrasekaran will step down as chairman of Tata Sons when his current term ends in February 2027, drawing curtains on a decade at the helm of one of India’s most influential business groups after a prolonged standoff over his reappointment with Tata Trusts Chairman Noel Tata.

Chandrasekaran, 63, who has spent 40 years with the Tata Group, on Wednesday said he had informed the Tata Sons board that he would not offer himself for reappointment when his term ends on February 20, 2027. He asked the board to settle on a successor soon to ensure a smooth transition.

The decision follows months of uncertainty over his continuation at Tata Sons, the principal holding company and promoter of Tata Group companies.

Philanthropic trusts collectively hold 66 per cent of Tata Sons, giving Tata Trusts significant influence over the group’s governance.

Chandrasekaran, widely known as 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 a five-year extension of his term. The proposal was subsequently recorded and recommended by the Tata Sons Nomination and Remuneration Committee and the board, he said.

The proposal was tabled at a February 24 board meeting but was not carried through after one director did not support it.

Without naming who opposed the proposal, Chandrasekaran said he chose to defer the decision in the absence of unanimous support.

Six months later, with no resolution reached, he said the leadership uncertainty had become untenable as Tata Sons oversees several strategic projects at critical stages.

The impasse had been linked to differences between Chandra and Noel Tata, who became chairman of Tata Trusts in 2024 following the death of Ratan Tata. Tata had reportedly sought assurances that Tata Sons would not be publicly listed, a position Chandra did not agree to. The disagreement also involved questions over board representation.

Tata had also reportedly sought greater clarity from Chandra on the group’s five-year strategic roadmap, ways to provide an exit to the Shapoorji Pallonji Group without taking Tata Sons public, and his position on the long-debated listing of Tata Sons.

Tata Sons, the principal holding company of the Tata Group, is majority-owned by Tata Trusts and controls more than 30 group companies, including Tata Consultancy Services, Tata Motors and Air India.