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Tata Sons chairman not to seek third term
N Chandrasekaran, Chairman, Tata Sons
N Chandrasekaran, popularly known as Chandra, on Wednesday, announced that he will not seek a third term starting February 2027 after failing to secure backing of Tata Trusts chairman Noel Tata for the top post.Chandra’s (63) third term was brought to a vote earlier in February. However, the decision was deferred, and he faced tough questions from Tata over losses in Air India and the group’s digital ventures. Massive capital allocation to new businesses such as semiconductors also came under scrutiny.While Chandra’s statement on Wednesday does not name Noel Tata, the reference was obvious.Chandra said both the principal shareholders of Tata Sons – Sir Ratan Tata Trust and Sir Dorabji Tata Trust – had unanimously resolved and recommended the extension of his next term for a period of five years. Subsequently, the resolution was tabled at the Tata Sons Board on February 24, but it failed to win the full support of board members. ‘No resolution’“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. It has been 6 months since that board meeting, and no resolution has been reached till date,” he wrote. Chandra who worked with the Tata Group for four decades said he is stepping aside so that the board can decide on succession and ensure a proper transition. “Tata Sons is a very large institution and there are many strategic projects that are at critical stages of execution. It is not only necessary to have a leader in place to lead the group beyond February 2027, but clarity on leadership is also important for employees, investors, partners and other stakeholders,” he said. Quorum issuesThe announcement comes days ahead of Tata Sons’ Annual General Meeting, which has come under the spotlight over the participation of trusts and quorum issues. Chandra’s reappointment as a director liable to retire by rotation is listed on the agenda. Clarity on leadership is essential as Tata Group’s businesses spans over 100 countries serving 900 million consumers. Chandra oversaw the group’s expansion after taking over the mantle following Cyrus Mistry’s unceremonious exit in 2017. He led the incubation of the first and only semiconductor fabrication plant. While group-level revenue and profitability rose 2x and 6x respectively, his tenure the marked resolution of major issues concerning the group’s telecom businesses. “Chandra’s resignation has rocked the boat and created an uncertainty over the future direction of the Tata Group. The group needs to take steps to ensure the confidence of all stakeholders. Other board members of Tata Sons will have to play a more active role and closely review the functioning of group companies until Chandra’s successor is selected,” said senior advocate H P Ranina.Published on August 12, 2026
