The move comes six months after the Board deferred a proposal to extend his tenure by five years, with the resolution failing to secure unanimous support. “I have asked the Board to decide on the succession soon to ensure a proper transition,” he said in a statement.
“Chandrasekaran wrote a letter to the directors of Tata Sons about leaving the company and not seeking reappointment,” a director at the Tata Group told The Indian Express.
The exit comes in the wake of differences of opinion in Tata Trusts, which hold a 66 per cent stake in Tata Sons. The Tata Trusts trustees, led by Chairman Noel Tata, had informally decided against renominating Chandrasekaran as a Director and renewing his tenure as Chairman of Tata Sons. This decision was to be formalised at the Tata Trusts meeting on August 13, said a senior Tata group Director.
The Tata group will have to search for a successor in the next six months, with sources saying they are “likely to consider people both from inside and outside the group”.
‘6 months and no resolution’
Chandrasekaran’s statement further read, “My current tenure as the Chairman of Tata Sons comes to an end on February 20, 2027. 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, which was recorded and recommended by the Tata Sons Nomination and Remuneration Committee and the Board.”
“Subsequently, the resolution was tabled in the Tata Sons Board on February 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 wrote.
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“It has been 6 months since that Board meeting, and no resolution has been reached till date,” he said.
He said Tata Sons is a very large institution and there are many strategic projects under critical stages of execution. “It is not only necessary to have a leader in place to lead the Group beyond February 2027, but also clarity on leadership is important for employees, investors, partners and other stakeholders,” he said.
“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 February 20, 2027,” he said.
“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. Leading Tata Sons over the past decade has been a great honour and a profound responsibility,” he said.
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Chandrasekaran is also Chairman of many leading Tata Group companies such as Tata Steel, Tata Motors, TCS and Indian Hotels. All these companies will get a new Chairman by February 2027.
His tenure as Chairman started in February 2017, and he got an extension in February 2022.
At the Tata Sons Annual General Meeting (AGM) on August 18, shareholders were expected to consider the reappointment of Chandrasekaran as a director. “With a majority of trustees against renewal of his tenure, he might have decided to announce his exit before the AGM,” said a source.
The surprise meeting
On February 24, the outcome of the board meeting of Tata Sons was unusual, with Noel Tata surprising other Directors by raising questions about losses made by several unlisted companies in the $180 billion group.
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While the extension of Chandrasekaran for a third term of five years was agreed upon earlier by Tata Trusts trustees, Noel Tata proved to be a tough taskmaster, raising several queries at the board meeting and putting across a number of conditions for approving another term for him.
Four Tata Sons Directors were then in favour of extending the tenure and were ready to put the issue to vote, but Chandrasekaran proposed postponement of the decision as he apparently felt decisions in Tata Sons should be consensus-based — a tradition followed by the late Ratan Tata. In short, he wanted Noel Tata’s approval for the extension.
A major reason for the differences of opinion between Noel Tata and Chandrasekaran is the losses suffered by unlisted Tata companies. Air India’s losses more than doubled to Rs 22,238 crore in FY26 from Rs 10,859 crore in FY25. At the same time, its revenue declined to Rs 71,870 crore from Rs 78,636 crore during the year.
Tata Digital made a loss of Rs 4,974 crore during the year. The worsening of Air India’s financial performance comes as the Tata group continues to integrate and restructure its airline businesses. The group has been investing in fleet expansion, technology, and infrastructure, and in improving the customer experience, as it seeks to turn Air India into a globally competitive full-service carrier.
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The Tata Trusts board is scheduled to meet on August 13 to consider and approve the accounts and other matters ahead of the Tata Sons annual general meeting (AGM) on August 18.
The Trusts have also approached the Maharashtra Charity Commissioner seeking a one-time waiver to enable trustees of the Sir Ratan Tata Trust (SRTT) to hold a meeting and consider its accounts and other matters. The move assumes significance as the SRTT is currently restrained from holding meetings, creating uncertainty over its proposed grants of around Rs 400 crore as well as its Tata Sons dividend.
The SRTT could also face difficulty in exercising its voting rights at the Tata Sons AGM on August 18 unless it obtains approval from the Charity Commissioner. The issue has added another layer of uncertainty to the crucial shareholder meeting.
