Tata Sons chairman Chandrasekaran to step down in February

Tata Sons chairman N Chandrasekaran will not seek reappointment when his term ends in February 2027, after the board failed to reach a unanimous decision on a five-year extension. The 63-year-old said in a statement that one board member did not support the proposal when it came up in February, and no resolution was reached even six months later. The news sent shares of listed Tata companies plunging, eroding billions of dollars in a single day, as investors worried about a leadership crisis at the iconic conglomerate.

BBC reports the decision points to tensions that have been playing out for months after a boardroom power battle erupted between trustees of Tata Trusts, which owns 66% of Tata Sons. Tata Trusts has three nominees on the board, and members have disagreed over board nominations, funding approvals, and the public listing of Tata Sons, though the group has not publicly commented. Nikkei Asia notes the successor will face challenges including the turnaround of Air India and the threat from artificial intelligence. Analysts said the group has six months to find a successor, likely from within.