Tata Sons’ board has approved the reappointment of N Chandrasekaran as executive chairman for another five-year term, reversing his earlier decision not to seek an extension beyond his current tenure. The resolution was approved by a majority, with Noel Tata, chairman of Tata Trusts, voting against the proposal, according to people familiar with the board deliberations.
Chandrasekaran’s current term is scheduled to end on February 20, 2027. The Nomination & Remuneration Committee is expected to formally approach him to reconsider the decision he communicated to the board in August.
Leadership Continuity Amid Regulatory Uncertainty
The board’s decision comes shortly after the Reserve Bank of India rejected Tata Sons’ request to surrender its registration as a Core Investment Company. The regulatory development has brought the potential listing of Tata Sons back into focus.
Tata Sons had sought to exit the regulatory framework after strengthening its balance sheet and repaying more than Rs 21,000 crore in debt. The move was intended to avoid the listing requirement applicable to upper-layer NBFCs.
The RBI had classified Tata Sons as an upper-layer NBFC in September 2022 under its scale-based regulatory framework. The classification required the company to list within three years. With the deadline having passed in September 2025, the RBI’s September 11 decision to reject the deregistration request has renewed attention around Tata Sons’ future regulatory and ownership structure.
Noel Tata Votes Against Resolution
Noel Tata, whose Tata Trusts and affiliated trusts collectively control around 66% of Tata Sons, voted against Chandrasekaran’s reappointment, according to the report.
The decision also comes against the backdrop of differences reportedly surrounding the proposed listing of Tata Sons and capital allocation toward newer group businesses, including Air India, Tata Digital and BigBasket.
The Shapoorji Pallonji Group, which holds roughly 18% of Tata Sons, has favoured a listing. However, Tata Sons has not formally announced plans for an IPO.
Succession Plans Put on Hold
Chandrasekaran’s decision in August not to seek another term had prompted Tata Sons to begin considering succession options. Among the names reportedly discussed were Tata Steel CEO TV Narendran, Tata Sons Group CFO Saurabh Agrawal and National Stock Exchange CEO Ashish Chauhan, along with other internal candidates.
The latest board resolution effectively puts that succession exercise on hold, subject to Chandrasekaran formally accepting the proposed extension. The chairman-selection process associated with the Sir Dorabji Tata Trust is also expected to be paused or discontinued, according to people familiar with the matter.
Chandrasekaran has led Tata Sons since 2017, succeeding Ratan Tata as chairman. He was reappointed for a second five-year term in 2022.
If the latest reappointment is formally completed, Chandrasekaran would continue to lead the Tata Group for another five years. His continuation also comes at a significant point for Tata Sons, with regulatory requirements, ownership considerations and the possibility of a future listing likely to remain important issues for the group.
Any eventual IPO or stake sale, however, would depend on regulatory approvals, governance decisions and other formal processes. Tata Sons has not announced an IPO at this stage.
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