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| Natarajan Chandrasekaran - India Economic Summit 2011 |
Tata Sons Chairman Chandrasekaran to Step Down After Board Dispute
NEW DELHI — August 12, 2026
N. Chandrasekaran, chairman of Tata Sons, will not seek another term as head of India’s Tata Group, saying the company’s board has not resolved a dispute over his reappointment with Tata Trusts, the charitable organization that controls the group.
Chandrasekaran, 63, said the lack of a decision had continued for six months and that the group needed clarity over its leadership. Tata Sons oversees more than 30 major Tata companies, including Tata Consultancy Services, Tata Motors and Air India.
The disagreement between Chandrasekaran and Tata Trusts has developed over several months. Issues have included whether Tata Sons should eventually be listed on the stock market, losses at Air India and the planned departure of a minority shareholder.
Tata Trusts owns 66% of Tata Sons and plays a central role in the governance of the wider group. Noel Tata, who chairs the trusts, opposed Chandrasekaran’s reappointment when the Tata Sons board discussed the matter in February.
Chandrasekaran said no resolution had been reached since that meeting. He argued that clear leadership was particularly important because Tata Sons is managing several major projects that are at critical stages.
A person with direct knowledge of Chandrasekaran’s decision said the disagreements with Tata Trusts were the sole reason for his decision to step down. Tata Trusts did not respond to a request for comment.
The leadership dispute comes as parts of the Tata Group face significant challenges. Air India has been recording losses, Jaguar Land Rover has experienced weaker sales, and Tata’s electronics business recently had to change its processes after a data leak affected information involving customers including Apple and Tesla.
Investors reacted negatively to the announcement. Shares of TCS, where Chandrasekaran spent most of his career, fell 4%. Tata Motors, which owns Jaguar Land Rover, declined 1.3%, while Tata Steel fell by more than 1%.
Analysts have pointed to both achievements and problems during Chandrasekaran’s time leading the group. Deven Choksey, managing director of a Mumbai financial services company, said Tata had substantially increased profits under his leadership, while businesses including Air India, digital services and e-commerce continued to produce significant losses.
Tata Group has expanded across a wide range of industries over many decades. Its businesses include automobiles, information technology, steel, consumer products, hotels and aviation. The group has also acquired major international businesses, including Jaguar Land Rover and British tea company Tetley.
Tata Motors agreed last year to acquire the trucks and buses business of Italy’s Iveco in a deal valued at about $4.36 billion. Tata also operates hundreds of Starbucks outlets in India through its partnership with the U.S. coffee company.
The relationship between Tata Sons and Tata Trusts has faced major disagreements before. In 2016, the Tata Sons board removed then-chairman Cyrus Mistry following a dispute with Ratan Tata, the former group chairman and a leading figure in Tata Trusts. The dispute later became the subject of a long-running legal battle over corporate governance.
Tata remains one of India’s largest business groups by market value, with companies spanning many parts of the economy. Its group companies generated combined revenue of about $185 billion in the last financial year, while its 26 publicly listed businesses had a combined market value of about $277 billion as of March 31.
Chandrasekaran began his career at Tata in 1987 as an intern at TCS. He rose through the company to become its chief executive in 2009 before becoming chairman of Tata Sons in 2017.
His departure will now create a major leadership decision for Tata Sons and Tata Trusts. With several large businesses undergoing changes and major investments underway, the choice of his successor will be closely watched by employees, investors and business partners.
