Tata defers call on chairman’s term, signalling new power tussle

Published Tue, Feb 24, 2026 · 10:11 PM

[NEW DELHI] The board of Tata Sons deferred a decision on granting a third term to chairman Natarajan Chandrasekaran, people familiar said, in the latest sign that another leadership tussle is brewing at India’s oldest conglomerate.

The deferment by Tata Group’s holding company follows a difference of opinion among the board of directors regarding financial losses in some business units, according to one person who asked not to be identified as the information is not yet public. Noel Tata, who heads Tata Trusts, opposed it citing factors including the retirement age cap of 65 years, another person said.

The board of directors after lengthy discussions on Tuesday (Feb 24) pushed the decision to a later date, the people added. The current term of the 62-year-old Chandrasekaran runs till February next year. 

The Economic Times reported this development earlier on Tuesday, days after it said Chandrasekaran was likely to get a third term.

A spokesperson for Tata Sons did not immediately respond to an email seeking comment.

The leadership at Tata Sons is a crucial call after the coffee-to-cars conglomerate battled multiple crises last year including a deadly Air India crash, a Jaguar Land Rover cyberattack, and renewed tensions at Tata Trusts, which is now helmed by Ratan’s half-brother Noel.

The latest decision on Tata Sons chairmanship highlights how Noel is increasingly asserting himself after taking over the Tata Trusts in 2024. Noel had floated the idea of splitting the chairman’s responsibilities among three leaders but the proposal was stalled, local newspaper Mint reported in September. 

If Chandrasekaran – the first non-family, non-heir chairman at Tata Sons – eventually gets reappointed, it would provide leadership continuity for the group as it navigates headwinds across sectors.

The Indian conglomerate was shaken a decade back as well when its patriarch Ratan Tata returned from retirement to oust his successor Cyrus Mistry, triggering the country’s worst corporate battle.

For much of its 150-year-plus history, Tata Group enjoyed unusually steady leadership, with chairmen drawn from within its trusted circle and transitions managed quietly. That calm was shattered in 2016, when Tata Sons abruptly ousted then-chairman Mistry in a boardroom coup led by Ratan Tata – a lifelong bachelor, who had no children to install in the role.

The episode had raised questions about succession planning and the balance of power between Tata Sons and Tata Trusts, a collective of charities that controls two-thirds of the holding company.

Chandrasekaran’s appointment in 2017 was meant to steady the ship and restore confidence. Under his chairmanship, Tata Group’s 15 largest listed companies almost doubled revenue and profits. 

His tenure has been defined by ambitious bets – from building India’s first homegrown semiconductor factory to steering cash-cow Tata Consultancy Services through the disruption of artificial intelligence. 

The leadership at Tata Sons will have to navigate a tricky working relationship with Noel, especially as the Trusts remain key to shaping the group’s governance and he straddles multiple executive positions at group companies. 

Noel is chairman of Trent and Tata International, besides serving as a director at Tata Sons. The overlapping positions means he technically reports to Chandrasekaran while also helming the entity that controls the latter’s job.

Uncertainty is also growing over how aggressively Noel plans to position himself and his children in the Tata power structure. His son, Neville, was appointed as a Tata Trusts trustee late last year while Mehli Mistry, an outspoken adversary, stepped down as a fellow trustee. BLOOMBERG