N Chandrasekaran to step down as Tata Sons chairman in Feb 2027 amid board rift

Tata Sons chairman N Chandrasekaran has decided not to seek an extension of his tenure beyond February 2027, citing the lack of unanimous board support for his reappointment.

Chandrasekaran announced the decision on Wednesday, saying Tata Trusts had unanimously recommended extending his term by another five years. However, the proposal failed to secure unanimous support from the Tata Sons board.

“My current tenure as the Chairman of Tata Sons comes to an end on Feb 20, 2027,” Chandrasekaran said in a statement.

He said Sir Dorabji Tata Trust and Sir Ratan Tata Trust had recommended his reappointment, and the proposal was subsequently placed before the Tata Sons board on February 24, 2026. However, one board member did not support the proposal.

“In the absence of unanimous support, I chose to defer the decision,” he said.

Chandrasekaran said six months had passed without a resolution and stressed the need for clarity on the group’s leadership as several strategic projects were at critical stages.

“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.

He also asked the board to begin the succession process soon to ensure a smooth transition.

Tensions with Tata Trusts

The decision comes amid reported differences between Chandrasekaran and Tata Trusts, which owns a 66% stake in Tata Sons, the holding company of the Tata Group.

The group includes major companies such as TCS, Tata Motors and Air India. According to Reuters, disagreements in recent months have involved board representation, business strategy, losses at Air India and the proposed exit of a minority shareholder.

In February, Tata Sons postponed a decision on Chandrasekaran’s reappointment after Noel Tata, chairman of Tata Trusts, reportedly opposed the move.

The Tata Group has also faced several challenges over the past year, including the fatal Air India crash in Ahmedabad, pricing pressures at TCS and a cyberattack on Jaguar Land Rover that disrupted production.

Chandrasekaran took over as Tata Sons chairman in 2017 and began his second five-year term in 2022. He will remain in the position until February 20, 2027, unless the board decides otherwise.