Tata Sons chairman N Chandrasekaran on Wednesday said he has decided to step down and will not seek reappointment for another term. Chandrasekaran is also the chairman of several Tata Group companies, including Tata Steel, Tata Motors, TCS, and Indian Hotels. In a statement, Chandrasekaran said that he has asked the board to decide on the succession soon to ensure a proper transition. His current term runs until February 2027. The development holds significance as it comes ahead of the company's annual general meeting, scheduled for August 18.
Completes 40 years at Tata Group
Chandrasekaran said he has completed 40 years of professional life at the Tata Group and is grateful for the immensely satisfying opportunity to contribute to this venerable institution. N Chandrasekaran was reappointed as Tata Sons Chairman for five more years in 2022.
"Leading Tata Sons over the past decade has been a great honour and a profound responsibility," he said in a statement.
"It has been 6 months since that Board meeting, and no resolution has been reached till date. Tata Sons is a very large institution and there are many strategic projects that are under critical stages of execution. It is not only necessary to have a leader in place to lead the Group beyond Feb 2027, but also clarity on leadership is important for employees, investors, partners and other stakeholders," the statement reads.
"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 Feb 20, 2027," he said.
"Sir Dorabji Tata Trust and Sir Ratan Tata Trust had unanimously resolved and recommended the extension of my next term for a period of five years, which was recorded and recommended by the Tata Sons Nomination and Remuneration Committee and the Board. Subsequently, the resolution was tabled in the Tata Sons Board on Feb 24, 2026. 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 wrote in his statement.
Tata Sons chairman since 2017
Chandrasekaran became chairman of Tata Sons in 2017 after previously serving as chief executive of Tata Consultancy Services.
The development comes amid reported differences between Tata Sons and Tata Trusts over Chandrasekaran's reappointment.
Tata Sons, the principal holding company of the Tata Group, is majority-owned by Tata Trusts and controls more than 30 group companies.
TCS shares fall
Amid this, shares of Tata Consultancy Services fell 5 per cent. Last seen, the stock was trading at Rs 2,318.10, representing a fall of Rs 122.10, or 5 per cent, from the previous close of Rs 2,440.20 on the BSE. The market cap of the company stood at Rs 8,40,119.92.
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