Tata Sons Delays Decision on Chairman N Chandrasekaran's Term Extension

Tata Sons Board Divided Over Chairman N Chandrasekaran's Reappointment

On February 24, CNBC-TV18 reported that Tata Sons has deferred a decision on the extension of chairman N Chandrasekaran due to disagreements among the board members. According to the report, Tata Trusts chairman Noel Tata was the only board member who did not agree with the reappointment of Chandrasekaran.

The concerns raised over the losses reported in new companies of the group, including newer ventures, were a significant factor in the disagreements. However, Chandrasekaran received backing from other directors who argued that such financial strain is typical of greenfield projects in their early stages.

Chandrasekaran has been at the helm of Tata Group's holding company since 2017, after the board ousted Cyrus Mistry. The delay in decision comes against a mixed financial backdrop. Tata Sons posted a 24% rise in FY25 revenue to Rs 5.92 lakh crore, while net profit fell 17% to Rs 28,898 crore.

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The company's annual report highlighted that over the past five years, the Tata Group nearly doubled revenue and more than tripled net profit and market capitalisation, while spending Rs 5.5 lakh crore to become "future fit." The delay in decision has led to a negative impact on the stock market, with Tata Investment Corporation trading 2.94% lower at Rs 668 on NSE at 3:40 pm.

The board meeting was marked by senior leaders being divided over the mounting losses at some of the Tata Group's newer ventures, with the issue notably flagged by Tata Trusts chairman Noel Tata.