Tata Sons chairman Chandrasekaran to step down in 2027 amid leadership uncertainty

 

MUMBAI, Aug 12 — Tata Sons chairman N. Chandrasekaran said today he would not seek reappointment when his term ends next year, deepening a leadership crisis at India’s largest conglomerate.

Tata Sons is the single largest shareholder in firms including IT giant Tata Consultancy Services (TCS) and Tata Motors, which owns British luxury car maker Jaguar Land Rover.

Chandrasekaran, 63, said he had informed the board that he would step down when his tenure ends early next year, after directors failed to reach a decision on his future.

“It has been six months since the matter of my reappointment was first discussed by the Board and no resolution has been reached till date,” he said in a statement.

“Under these circumstances… I have decided not to offer myself for reappointment when my term ends on Feb 20, 2027. I have asked the Board to decide on the succession soon to ensure a proper transition.”

The move comes after deliberations on Chandrasekaran’s reappointment were deferred in February following a disagreement among board members over a range of issues, including losses at some group companies.

He said a decision on the new leadership was needed as several major projects were at critical stages.

“Tata Sons is a very large institution and there are many strategic projects that are under critical stages of execution,” he said.

“Clarity on leadership is important for employees, investors, partners and other stakeholders.”

Indian media have reported tensions over the group’s strategic direction.

The Economic Times said this year that Noel Tata, head of the influential Tata Trusts and half-brother of late chairman Ratan Tata, sought conditions for Chandrasekaran’s reappointment, including curbs on heavy capital spending in high-risk ventures.

Tata Trusts owns about 66 percent of Tata Sons, giving it decisive influence over the group’s governance.

Chandrasekaran, a former chief executive of TCS, took over as chairman of Tata Sons in 2017 following a bitter boardroom battle that led to the ouster of Cyrus Mistry.

Chandrasekaran’s decision to step down comes at a challenging time for the conglomerate.

TCS, the group’s largest profit generator, has come under pressure from a slowdown in global technology spending. Its shares have fallen more than 20 percent in the past year as it also grapples with threats from generative AI software.

It was down five percent Wednesday.

And Tata’s ambitious effort to revive Air India following its acquisition from the government in 2022 has faced a series of operational setbacks.

In June 2025, a London-bound flight crashed shortly after take-off from Ahmedabad, killing 241 of the 242 people on board and 19 people on the ground.

And local media reports yesterday said the pilot of an Air India flight that experienced severe mid-air turbulence last week had smoked marijuana.

Several Tata Group stocks fell after Chandrasekaran’s announcement, with Tata Motor down more than three percent, Tata Steel off around two percent and Tata Communications more than one percent lower. — AFP