Mumbai, India – A recent board meeting of Tata Sons on May 26, 2026, saw extensive presentations from the heads of several of the conglomerate's loss-making ventures. These included critical sectors such as aviation, battery manufacturing, electronics, e-commerce, and semiconductors, signaling ongoing internal scrutiny over significant investments.
The meeting followed a contentious February session where Noel Tata, a board member of Tata Sons and Chairman of Tata Trusts, voiced strong concerns regarding the substantial capital expenditure allocated to these ventures, noting their current unprofitability. Air India, for instance, is projected to report losses around $3 billion for the 2026 fiscal year alone, highlighting the financial pressures facing the group.
Chandrasekaran's Reappointment Under Review
A key item of discussion, though not formally decided, was the reappointment of N Chandrasekaran as Chairman of Tata Sons. Chandrasekaran, who assumed the role in February 2017 and has since had two renewals, is nearing the end of his current term in February 2027. His reappointment was deferred at the earlier February meeting due to Noel Tata's questions about the strategic direction of these financially struggling businesses.
During the May 26 meeting, a broad strategic plan for the next three to five years was outlined, reportedly to address these concerns. The decision on Chandrasekaran's future is now anticipated to be revisited at the next Tata Sons board meeting scheduled for June 12. Legal experts suggest there is no immediate pressure for a decision, as his term extends into early next year.
Options for Chandrasekaran's tenure reportedly include another five-year term or a shorter period until he turns 65 in 2028. Any such decision requires unanimous consensus within the board, making Noel Tata's continued reservations a significant factor. The forthcoming financial results for Tata Sons for the 2026 fiscal year, which will detail the extent of losses across these high-profile businesses requiring further capital investment, are also expected to influence the outcome.
Uncertainty Surrounds Tata Trusts and Venu Srinivasan
Adding another layer of complexity to the internal dynamics, two recent meetings of Tata Trusts, which holds a controlling two-thirds stake in Tata Sons, have not taken place. This situation is particularly critical as it impacts the reappointment of Venu Srinivasan, Chairman Emeritus of TVS Motor and a nominee of Tata Trusts on the Tata Sons board.
Srinivasan's reappointment to two smaller trusts recently failed to pass, with Noel Tata reportedly voting against one. Furthermore, the sensitive issue of a potential listing for Tata Sons remains a point of considerable disagreement between the two. In this context, Srinivasan's position and reappointment are seen as pivotal, underscoring the ongoing power struggles within the conglomerate. As tax lawyer Homi Ranina noted, "The meeting yesterday was meant to give an assurance to Noel Tata on the loss-making businesses and the way forward for them."
The various unresolved issues suggest that the internal "battle" at Tata Sons and Tata Trusts is far from over, with key leadership and strategic decisions still hanging in the balance.