Mumbai: N Chandrasekaran, the chairman of Tata Sons, stepped down on Wednesday, ahead of the company’s annual general meeting, which is scheduled for August 18.
“I have completed 40 years of professional life at the Tata Group. I am grateful for the immensely satisfying opportunity to contribute to this venerable institution,” he said in a statement.
The move witnessed a tumble in the company’s stocks with investors being uncertain about the future.
Chandrasekaran will continue as chairman till February 20, 2027. However, he said he would not seek reappointment once his term comes to an end.
“My current tenure as the Chairman of Tata Sons comes to an end on Feb 20, 2027,” he said.
His resignation comes amid tensions with shareholders and differences between him and Tata Trusts chairman Noel Tata, as reported by Hindustan Times.
“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,” Chandrasekaran said, reflecting on ending his term in February 2027.
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, he said.
“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.
Six months had passed since that board meeting without a resolution being reached, Chandrasekaran said.
Explaining why he had decided against seeking another term, he pointed to the size of Tata Sons and the number of strategic projects currently at critical stages.
“Tata Sons is a very large institution and there are many strategic projects that are under critical stages of execution,” he said.
Having a leader in place beyond February 2027 was necessary not only for taking the group forward but also for providing clarity to its employees, investors, partners and other stakeholders, Chandrasekaran said.
He said he had decided not to offer himself for another term when his current tenure ends, against this backdrop.
“Under these circumstances, earlier today, I have communicated to the Tata Sons Board, that I have decided not to offer myself for reappointment when my term ends on Feb 20, 2027,” he said.
Shares of key Tata Group companies, including Tata Consultancy Services (TCS), Tata Steel and Tata Power, declined, following this development. At 11.30 am, Tata Power was trading 1.26% lower, while TCS fell 3.9% and Tata Steel declined 1.83%.
While Tata Sons encompasses over 30 companies, including Tata Consultancy Services (TCS), Tata Motors and Air India, it is in turn 66% owned by Tata Trusts, the group’s charitable arm.
Disagreements have been brewing between Chandrasekaran and Tata Trusts over the past few months, with the two sides clashing over board representation, strategy, losses at group company Air India and how to handle the planned exit of a minority shareholder, Reuters reported.
Tata Sons postponed a decision on reappointing Chandrasekaran as chairman after Noel Tata, chairman of Tata Trusts, opposed the move in February.
The Group has also got itswlf 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.