The board of Tata Sons is scheduled to meet today, May 26, 2026, with critical discussions expected on the performance of the group’s loss-making businesses and the future leadership. A central issue is the reappointment of Chairman N Chandrasekaran, which was not approved at the previous board meeting on February 24.
Leadership Uncertainty and Internal Divisions
Chandrasekaran, known as Chandra, began his first five-year term in February 2017, which was renewed in 2022 for another five years. His current term concludes in February 2027. However, the failure to secure his reappointment earlier this year has highlighted growing tensions within the conglomerate's top ranks.
Noel Tata, chairman of Tata Trusts—which holds 66 percent of Tata Sons’ equity—is a key figure in these discussions. He reportedly questioned significant capital expenditure on new ventures, including semiconductors, and the substantial losses incurred by Tata Digital and Air India at the last board meeting. These concerns contrast with the views of other board members, such as Venu Srinivasan, chairman emeritus of TVS Motor, who defend Chandrasekaran's strategy, noting that new businesses often have long gestation periods before profitability.
Losses and Listing Debate
Reports indicate that Tata Sons' unlisted businesses posted a loss of Rs 10,905 crore in FY25, with projections suggesting this figure could rise to Rs 29,000 crore. Noel Tata is reportedly concerned about these mounting losses, especially in new ventures launched under Chandrasekaran's tenure, including Tata Digital, various electronics projects, and the recently acquired Air India.
Another significant point of contention is the potential listing of Tata Sons. While the Reserve Bank of India (RBI) has classified Tata Sons among the top 15 non-bank finance companies, requiring it to list, Noel Tata has consistently opposed this move. Venu Srinivasan and Vijay Singh, former Defence Secretary and vice-chairman of Tata Trusts, are reported to support the listing.
The Path Forward
The reappointment of a Tata Sons chairman traditionally requires unanimous board approval, a process complicated by the current disagreements. Options for Chandrasekaran’s continuation include another five-year term, a shorter two-year term until he reaches 65 in 2028, or further deferral of the decision. Chandrasekaran and Noel Tata reportedly met over the weekend to discuss company performance ahead of today's crucial meeting.
The board meeting is expected to include updates from individual companies, particularly those facing losses, regarding their business status and future plans. The outcome will significantly influence the strategic direction and leadership stability of one of India's largest conglomerates.