N Chandrasekaran to exit amid boardroom rift, Tata Sons' stocks tumble

N Chandrasekaran will step down as chairman of Tata Sons when his current term ends in February 2027, drawing curtains on a decade at the helm of one of India's most influential business groups after a prolonged standoff over his reappointment with Tata Trusts Chairman Noel Tata. Chandrasekaran, 63, who has spent 40 years with the Tata Group, on Wednesday said he had informed the Tata Sons board that he would not offer himself for reappointment when his term ends on February 20, 2027. He asked the board to settle on a successor soon to ensure a smooth transition.
The decision follows months of uncertainty over his continuation at Tata Sons, the principal holding company and promoter of Tata group companies. Philanthropic trusts collectively hold 66 per cent of Tata Sons, giving Tata Trusts significant influence over the group's governance.
Reflecting on ending his term in February 2027, Chandrasekaran said," Sir Dorabji Tata Trust and Sir Ratan Tata Trust had unanimously resolved and recommended the extension of my next term for a period of five years." He said the proposal was later placed before the Tata Sons board on February 24, 2026. However, it did not go through because one board member did not support it. “Subsequently, the resolution was tabled in the Tata Sons Board on Feb 24, 2026. However, 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,” he said.
Following the development, shares of key Tata Group companies, including Tata Consultancy Services (TCS), Tata Steel and Tata Power, declined. At 11:30 am, Tata Power was trading 1.26% lower, while TCS fell 3.9% and Tata Steel declined 1.83%.Tata Sons encompasses over 30 companies, including Tata Consultancy Services (TCS), Tata Motors and Air India, but is in turn 66% owned by Tata Trusts, the group's charitable arm.
In February, Tata Sons postponed a decision on reappointing Chandrasekaran as chairman after Noel Tata, chairman of Tata Trusts, opposed the move.Tata has also been entangled in several controversies over the past one year after the fatal Air India crash in Ahmedabad, pricing pressure at TCS and a cyberattack at Jaguar Land Rover that disrupted production and weighed on Britain's economic output.