The board of Tata Sons has deferred a decision on granting a third term to Chairman Natarajan Chandrasekaran, signaling fresh leadership uncertainty within India’s oldest conglomerate. Directors discussed his reappointment at a meeting on Tuesday but chose not to take a final call, as his current term runs until February next year, according to people familiar with the matter. The delay reportedly stems from differences among board members over financial losses in certain business units. The development comes just days after media reports suggested Chandrasekaran was likely to secure a third term.
The move revives memories of the dramatic boardroom battle a decade ago, when Ratan Tata returned from retirement to remove his successor Cyrus Mistry, triggering one of India’s biggest corporate governance crises.
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Crises Test Tata Group as Chandra’s Continuity Hangs in Balance
The Tata Group has faced multiple challenges over the past year, including a deadly Air India crash, a cyberattack at Jaguar Land Rover, and renewed tensions within Tata Trusts, now led by Ratan Tata’s half-brother Noel Tata. If the 62-year-old Chandrasekaran — the first non-family chairman of Tata Sons — secures another term, he would provide leadership continuity as the group navigates sectoral headwinds. Since taking charge in 2017, he has nearly doubled revenue and profits across the group’s 15 largest listed companies. His tenure includes ambitious initiatives such as building India’s first semiconductor fabrication plant and steering Tata Consultancy Services through the disruption driven by artificial intelligence.
The decision will also test Noel Tata’s growing influence after he assumed leadership of Tata Trusts in 2024. Observers are closely watching how he positions himself and his family within the group’s power structure, especially after his son Neville joined the Trusts as a trustee while Mehli Mistry stepped down. With the board postponing its verdict, fresh questions have emerged over succession planning and the balance of power within the Tata empire.
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