Tata Trusts Consider Re-Evaluating Chandra's Performance, to Develop New Business Strategy

Tata Sons Board Meeting Looms as Speculation Intensifies Over N Chandrasekaran's Future

The February 24 board meeting of Tata Sons, where a decision on a fresh five-year term for N Chandrasekaran was postponed, has sparked intense speculation about the way forward for the storied conglomerate. All eyes are now on the next board meeting, scheduled for June.

The decision on Chandrasekaran's extension was put off after Tata Trusts chairman Noel Tata raised objections that reached well beyond tenure, bringing into focus larger concerns around capital allocation, financial and market performance across group companies, and, crucially, where final authority within the Tata group ultimately lies.

According to Tata Group officials familiar with the matter, Chandrasekaran's extension cannot go through without the support of both Tata Trusts-nominated directors on the Tata Sons board - Noel Tata himself and Venu Srinivasan. This flows from Article 121A of Tata Sons' Articles of Association, which mandates prior trust approval for major decisions, such as the appointment or reappointment of the Chairman and Managing Director and other directors.

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In July 2025, the boards of the two main Tata Trusts passed unanimous resolutions recommending a fresh five-year term for N Chandrasekaran. However, the relevance of the business plan presented in 2025 is now a bone of contention. Tata Group officials said that Chandrasekaran should now present a fresh business plan, as the plan he presented last year has been overtaken by events, especially as losses in several new-age and consumer-facing businesses have mounted.

The past year has seen a meaningful erosion in market value of the Tata group's listed companies. In 2025 alone, the combined market capitalisation of listed Tata companies fell by around ₹3 lakh crore. Since Chandrasekaran's second term began on February 11, 2022, the benchmark Nifty index has gained 30.4 percent, while group flagship Tata Consultancy Services has declined 33 percent.

Noel Tata is understood to have sought assurances that Tata Sons would not be listed, a question closely tied to the Shapoorji Pallonji Group, which owns about 18.38 percent of Tata Sons and has long sought ways to unlock value from its stake.

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