Tata Sons Defers Decision on Chandra’s Third Term

The board of Tata Sons has deferred a decision on whether to grant Chairman Natarajan Chandrasekaran a third term, according to people familiar with the matter.

The discussion took place at a board meeting on Tuesday. However, no final decision was taken as Chandrasekaran’s current term runs until February next year. The information has not yet been made public officially.

According to sources cited in reports, the deferment follows differences of opinion among some board members regarding financial losses in certain business units. Tata Sons has not issued an official statement on the matter so far. A spokesperson did not immediately respond to media queries.

The development has drawn attention as Tata Group has historically seen relatively stable leadership transitions. However, the conglomerate witnessed a major boardroom battle in 2016, when then-chairman Cyrus Mistry was removed. That episode raised questions about governance and succession planning within the group.

Chandrasekaran, widely known as “Chandra,” became chairman of Tata Sons in 2017. He was the first chairman who was neither a member of the Tata family nor an heir. His appointment was seen as a move to bring stability after the leadership crisis.

If reappointed, Chandrasekaran would provide continuity at a time when the group is navigating multiple challenges across sectors. Over the past year, Tata Group has faced issues including an Air India plane crash, a cyberattack on Jaguar Land Rover, and internal developments at Tata Trusts.

Tata Trusts, which holds a majority stake in Tata Sons, is now led by Noel Tata. His leadership is being closely watched, particularly regarding governance decisions within the group. Recent changes at Tata Trusts, including new trustee appointments and exits, have added to discussions about the balance of influence within the Tata structure.

Under Chandrasekaran’s tenure, Tata Group’s major listed companies reportedly saw significant growth in revenue and profits. His leadership period has also included expansion into sectors such as semiconductors, alongside managing transitions in technology businesses like Tata Consultancy Services.

The board’s eventual decision on Chandrasekaran’s reappointment is expected to indicate the direction of leadership and governance within one of India’s largest and oldest business groups.

For now, the matter remains under consideration, with no formal announcement from Tata Sons.