Tata Sons Board Defers Decision on Chandrasekaran’s Third Term

The Tata Group’s apex holding company, Tata Sons, has deferred a decision on extending the tenure of its chairman Natarajan Chandrasekaran beyond February 2027, signalling emerging governance differences within one of India’s most influential conglomerates. While no official statement followed the board meeting, sources indicate that the deferment was sought to allow wider consultation and consensus building .

At the centre of the discussion is Noel Tata, chairman of Tata Trusts, which holds a controlling 66 percent stake in Tata Sons and plays a decisive role in strategic decisions . Concerns were reportedly raised about losses in certain group companies and the financial discipline of the conglomerate. Noel Tata is also understood to oppose listing Tata Sons and is believed to have sought written assurances on the holding company’s future capital structure and strategic direction.

The listing question carries broader regulatory implications . Tata Sons was earlier classified as an upper-layer NBFC , a designation that could require it to list unless debt levels are reduced or regulatory relief is secured. Avoiding a listing is seen by some stakeholders as essential to preserving the group’s unique ownership structure and philanthropic legacy .

Despite the concerns, several board members are said to have supported Chandrasekaran, arguing that challenges in a few businesses should not overshadow the overall performance of the group or his leadership record. Since taking charge in 2017 after leading Tata Consultancy Services, he has overseen restructuring , improved balance sheets , and strengthened governance across the conglomerate. During his tenure, revenues and profits of the group’s largest listed companies have nearly doubled, while the group has undertaken strategic bets in aviation, semiconductors, and digital transformation . The acquisition and turnaround of Air India and efforts to position the group for artificial intelligence disruption have been among the defining initiatives of his leadership.

The debate comes at a pivotal moment for the 156-year-old conglomerate founded by Jamsetji Nusserwanji Tata. Following the death of Ratan Tata in 2024, Noel Tata assumed leadership of the trusts, reinforcing their central role in governance. The Shapoorji Pallonji Group remains the largest minority shareholder with about 18 percent , adding another layer to the group’s complex ownership structure.

Leadership continuity at Tata Sons carries significance far beyond a routine board appointment. The holding company oversees a vast network of businesses spanning automobiles, technology, steel, consumer products and aviation, and its strategic direction influences markets, investors and industry trends. The postponement therefore reflects not only a decision about tenure but a broader conversation about leadership continuity , regulatory pressures , and the future trajectory of one of India’s most respected business houses.