Amid shifting power dynamics within Tata group, following the appointment of Noel Tata as chairman of Tata Trusts, which controls 66% of Tata Sons, the holding company of the conglomerate, after the death of half-brother Ratan Tata last October, there's one constant. Tata Sons chairman N Chandrasekaran will continue at the group for another five years. ET has reported that based on information from sources that the Tata Trusts have approved a third executive term for Chandrasekaran, in the first ever departure from the Tata Group's retirement policy. Chandrasekaran will be 65 when he ends his second term in February 2027. Under group rules, executives are expected to step down from such roles at 65 although they can remain in non-executive capacities until 70. A source told ET that the Trusts' resolution was sent to Tata Sons, which will decide the matter.
Chandrasekaran was granted a second five-year term in February 2022. A Tata Consultancy Services (TCS) veteran, he had first joined the board of Tata Sons in October 2016 and was appointed chairman in January 2017.
A few months ago, Chandrasekaran had briefed the board of Tata Trusts about the conglomerate’s performance and plans in a closed-door meeting at Bombay House, in what long-time group watchers said was a notable departure from precedent, ET had reported.
Extension of Chandrasekaran's tenure will speak of not only his capabilities and the confidence Tata Trusts places in him, but also of the direction of the conglomerate which began charting a bold new course under him.
Also Read: N Chandrasekaran gets historic extension as Tata bets big on semiconductors, EVs, and Air India
Why Chandrasekaran is crucial for Tata Group
Two factors seem to be leading to Chandrasekaran's third consecutive term at the group. For the sake of continuity in functioning, it was felt that executive leadership was necessary to see through critical projects like semiconductors, batteries for electric vehicles and Air India, a person familiar with the matter told ET. Besides continuity, Chandrasekaran's stellar record too would have counted in the decision made by Tata Trusts.
Under Chandrasekaran, the Tata Group nearly doubled revenue and more than tripled net profit and market capitalisation over the past five years when it spent ₹5.5 lakh crore. Revenue from all listed and unlisted entities was ₹15.34 lakh crore in FY25 with net profit at ₹1.13 lakh crore. However, over the last year, the group’s market cap has fallen by nearly ₹6.9 lakh crore to ₹26.5 lakh crore as of October 10, 2025, dragged down by a near 30% decline in the share price of TCS, the largest company in the Tata stable. During his tenure, Tata Sons’ net worth has risen to ₹1.49 lakh crore from ₹43,252 crore in 2018. His leadership also saw the group set up new businesses to capitalise on key opportunities. These include Tata Electronics’ entry into electronics and semiconductor manufacturing, assembly and testing. Tata Digital has set up an omni-channel platform with digital app Tata Neu besides pushing ahead into electronics (Croma), grocery (BigBasket), pharmacy and diagnostics (Tata 1mg) and fashion (Tata Cliq). In addition, Air India returned to the Tata Group after 69 years. Vistara and AirAsia India were merged with Air India and Air India Express, respectively. The Tata Group also acquired Tejas Networks, is building an indigenous mobile network stack and setting up battery gigafactories in India and the UK.
The ET report cited Ketan Dalal, managing director of consulting firm Katalyst Advisors, as saying the extension may appear unusual but is not entirely unexpected given the crucial juncture the group finds itself at. “Tata is an extraordinary and respected conglomerate, but it is currently navigating a complex landscape of internal and external challenges, from the Air India incident and rising geopolitical tensions to increasing market pressure around a potential Tata Sons IPO,” he said. “At the same time, the group is making bold bets on strategic growth areas such as semiconductors, defence and aviation.”
Chandrasekaran helms Tata as it rides a new wave
Tata Group, one of India's biggest conglomerates which has been almost a proxy for the country's industrial strides over decades -- from steel to automobiles to software -- now stands at a crossroads as technological, regulatory and geopolitical shifts alter the business landscape across the world and demand the behemoth to be nimble.
In the latest annual report of Tata Sons hcih highlighted stellar numbers under Chandrasekaran, he cited the example of Tata Motors as signifying the group's resurgence. "Let me pause and mention one example that exemplifies the best of what we can do: Tata Motors," he said. "With barely 5% share in passenger vehicles in 2017, it seemed an implausible idea that Tata Motors could launch India’s first electric vehicle in under one year from design to production, that its market position could rise from 6th to top-3 in the Indian market, that it could transform from a debt of INR 62,000 Cr to net cash positive status."
The group now seeks to alter strategies that "may have aged poorly with time and changing economic conditions". “Tata group has been on a transformational journey towards financial and strategic fitness,” Chandrasekaran said in the report. “It is my deep conviction that we must be fit to perform. To do that, we must be honest that some decisions that might have appeared ideal when they were taken may have aged poorly... As a result, our mantra in the last few years was ‘fitness first, velocity next’.”
In December last year, Chandrasekaran urged group company CEOs to aggressively pursue growth despite mounting uncertainties in domestic and global markets, executives with knowledge of the matter had told ET at that time. In internal strategy sessions and business reviews, Chandrasekaran emphasised boldness in ambition, stating that while margins can be adjusted over time, growth opportunities must be seized immediately, the executives had told ET. He set ambitious revenue targets with adequate capital allocation in place, they added. "While some quarters may pose challenges, he has emphasised the importance of seizing significant growth opportunities in each sector with a long-term vision," one of them said. Tata Sons did not comment. "Our chairman is clear that cyclical quarters can be no excuses and that the goal has to be scalable profitable growth," a top executive said.
The group has high expectations for Tata Electronics, Air India and Tata Digital, which are in the "building-up" phase to gain in scale and turn into financially strong businesses over the next three years. The holding company's mandate is that they should be among the Tata Group's top 10 businesses in the next three years. The biggest investments in 2024 have gone into these three units besides battery manufacturing. The total investment committed across businesses, estimated at $90 billion currently, will exceed $120 billion in the next five years.
The group has placed high-stakes bets across semiconductors, electric mobility, the consumer app ecosystem and Air India, committing over Rs 1.84 lakh crore in these segments in recent years. The capital allocation done by the holding company in new businesses is seen to be the largest in its history. Tata Sons is injecting fresh capital of Rs 30,000 crore into its emerging ventures, including Tata Digital, Tata Electronics and Air India, as well as the defence and battery units. This funding will be in addition to the $120 billion already committed to the new businesses in recent years.
In the recent past, Tata Group has proved it is not a lumbering conglomerate. It has grabbed at new-age opportunities such as semiconductors, batteries, aerospace and green energy while the success of Trent has proved that the group is ready to ride contemporary consumer trends. Under Chandrasekaran, the reinvention of Tata Group has already begun. Its sheer heft, execution capabilities and smart leadership are expected to power Tata Group's future strides.
While Tata Group's performance in recent years is impressive, there are critical questions about what comes next. Sustaining such performance across a highly diversified portfolio, amid rapidly changing economic and technological landscapes, will require the group to confront a series of challenges over the coming few years. The macroeconomic environment in which the Tata Group operates is becoming increasingly complex and unpredictable. With a significant global footprint, through companies like Tata Motors (it owns Jaguar Land Rover), Tata Steel Europe, and TCS, the Group is exposed to risks stemming from geopolitical tensions, trade disruptions and sluggish growth in key markets.
Protectionist policies in the US or EU could impact TCS's service contracts or Tata Steel’s exports. In this context, Tata’s overseas entities may find it harder to sustain robust growth rates while margins could come under pressure. One of the most profound shifts currently underway is the global race for dominance in artificial intelligence and digital infrastructure. TCS, the Group’s largest profit generator, is under increasing pressure to evolve beyond traditional IT services. Competitors are rapidly integrating generative AI and automation. The group also faces the enormous task of decarbonizing some of its most capital-intensive businesses. These include steel, energy, automotive manufacturing and aviation.
On the home front, Tata faces escalating competition across nearly every consumer-facing domain. In digital retail, logistics, aviation and EVs, it is now up against highly aggressive players.
Under Chanrasekaran, the group is currently executing several high-stakes transformation projects simultaneously. These include the turnaround of Air India, the expansion of Tata Electronics as a semiconductor and precision manufacturing player, and the EV revolution led by Tata Motors. Delays, cost overruns or missteps in any one of these large programmes could impact the group’s credibility or financial health. The execution risk is particularly acute given the sheer scale and ambition of these parallel transitions.
Chandrasekaran was granted a second five-year term in February 2022. A Tata Consultancy Services (TCS) veteran, he had first joined the board of Tata Sons in October 2016 and was appointed chairman in January 2017.
A few months ago, Chandrasekaran had briefed the board of Tata Trusts about the conglomerate’s performance and plans in a closed-door meeting at Bombay House, in what long-time group watchers said was a notable departure from precedent, ET had reported.
Extension of Chandrasekaran's tenure will speak of not only his capabilities and the confidence Tata Trusts places in him, but also of the direction of the conglomerate which began charting a bold new course under him.
Also Read: N Chandrasekaran gets historic extension as Tata bets big on semiconductors, EVs, and Air India
Why Chandrasekaran is crucial for Tata Group
Two factors seem to be leading to Chandrasekaran's third consecutive term at the group. For the sake of continuity in functioning, it was felt that executive leadership was necessary to see through critical projects like semiconductors, batteries for electric vehicles and Air India, a person familiar with the matter told ET. Besides continuity, Chandrasekaran's stellar record too would have counted in the decision made by Tata Trusts.
Under Chandrasekaran, the Tata Group nearly doubled revenue and more than tripled net profit and market capitalisation over the past five years when it spent ₹5.5 lakh crore. Revenue from all listed and unlisted entities was ₹15.34 lakh crore in FY25 with net profit at ₹1.13 lakh crore. However, over the last year, the group’s market cap has fallen by nearly ₹6.9 lakh crore to ₹26.5 lakh crore as of October 10, 2025, dragged down by a near 30% decline in the share price of TCS, the largest company in the Tata stable. During his tenure, Tata Sons’ net worth has risen to ₹1.49 lakh crore from ₹43,252 crore in 2018. His leadership also saw the group set up new businesses to capitalise on key opportunities. These include Tata Electronics’ entry into electronics and semiconductor manufacturing, assembly and testing. Tata Digital has set up an omni-channel platform with digital app Tata Neu besides pushing ahead into electronics (Croma), grocery (BigBasket), pharmacy and diagnostics (Tata 1mg) and fashion (Tata Cliq). In addition, Air India returned to the Tata Group after 69 years. Vistara and AirAsia India were merged with Air India and Air India Express, respectively. The Tata Group also acquired Tejas Networks, is building an indigenous mobile network stack and setting up battery gigafactories in India and the UK.
The ET report cited Ketan Dalal, managing director of consulting firm Katalyst Advisors, as saying the extension may appear unusual but is not entirely unexpected given the crucial juncture the group finds itself at. “Tata is an extraordinary and respected conglomerate, but it is currently navigating a complex landscape of internal and external challenges, from the Air India incident and rising geopolitical tensions to increasing market pressure around a potential Tata Sons IPO,” he said. “At the same time, the group is making bold bets on strategic growth areas such as semiconductors, defence and aviation.”
Chandrasekaran helms Tata as it rides a new wave
Tata Group, one of India's biggest conglomerates which has been almost a proxy for the country's industrial strides over decades -- from steel to automobiles to software -- now stands at a crossroads as technological, regulatory and geopolitical shifts alter the business landscape across the world and demand the behemoth to be nimble.
In the latest annual report of Tata Sons hcih highlighted stellar numbers under Chandrasekaran, he cited the example of Tata Motors as signifying the group's resurgence. "Let me pause and mention one example that exemplifies the best of what we can do: Tata Motors," he said. "With barely 5% share in passenger vehicles in 2017, it seemed an implausible idea that Tata Motors could launch India’s first electric vehicle in under one year from design to production, that its market position could rise from 6th to top-3 in the Indian market, that it could transform from a debt of INR 62,000 Cr to net cash positive status."
The group now seeks to alter strategies that "may have aged poorly with time and changing economic conditions". “Tata group has been on a transformational journey towards financial and strategic fitness,” Chandrasekaran said in the report. “It is my deep conviction that we must be fit to perform. To do that, we must be honest that some decisions that might have appeared ideal when they were taken may have aged poorly... As a result, our mantra in the last few years was ‘fitness first, velocity next’.”
In December last year, Chandrasekaran urged group company CEOs to aggressively pursue growth despite mounting uncertainties in domestic and global markets, executives with knowledge of the matter had told ET at that time. In internal strategy sessions and business reviews, Chandrasekaran emphasised boldness in ambition, stating that while margins can be adjusted over time, growth opportunities must be seized immediately, the executives had told ET. He set ambitious revenue targets with adequate capital allocation in place, they added. "While some quarters may pose challenges, he has emphasised the importance of seizing significant growth opportunities in each sector with a long-term vision," one of them said. Tata Sons did not comment. "Our chairman is clear that cyclical quarters can be no excuses and that the goal has to be scalable profitable growth," a top executive said.
The group has high expectations for Tata Electronics, Air India and Tata Digital, which are in the "building-up" phase to gain in scale and turn into financially strong businesses over the next three years. The holding company's mandate is that they should be among the Tata Group's top 10 businesses in the next three years. The biggest investments in 2024 have gone into these three units besides battery manufacturing. The total investment committed across businesses, estimated at $90 billion currently, will exceed $120 billion in the next five years.
The group has placed high-stakes bets across semiconductors, electric mobility, the consumer app ecosystem and Air India, committing over Rs 1.84 lakh crore in these segments in recent years. The capital allocation done by the holding company in new businesses is seen to be the largest in its history. Tata Sons is injecting fresh capital of Rs 30,000 crore into its emerging ventures, including Tata Digital, Tata Electronics and Air India, as well as the defence and battery units. This funding will be in addition to the $120 billion already committed to the new businesses in recent years.
In the recent past, Tata Group has proved it is not a lumbering conglomerate. It has grabbed at new-age opportunities such as semiconductors, batteries, aerospace and green energy while the success of Trent has proved that the group is ready to ride contemporary consumer trends. Under Chandrasekaran, the reinvention of Tata Group has already begun. Its sheer heft, execution capabilities and smart leadership are expected to power Tata Group's future strides.
While Tata Group's performance in recent years is impressive, there are critical questions about what comes next. Sustaining such performance across a highly diversified portfolio, amid rapidly changing economic and technological landscapes, will require the group to confront a series of challenges over the coming few years. The macroeconomic environment in which the Tata Group operates is becoming increasingly complex and unpredictable. With a significant global footprint, through companies like Tata Motors (it owns Jaguar Land Rover), Tata Steel Europe, and TCS, the Group is exposed to risks stemming from geopolitical tensions, trade disruptions and sluggish growth in key markets.
Protectionist policies in the US or EU could impact TCS's service contracts or Tata Steel’s exports. In this context, Tata’s overseas entities may find it harder to sustain robust growth rates while margins could come under pressure. One of the most profound shifts currently underway is the global race for dominance in artificial intelligence and digital infrastructure. TCS, the Group’s largest profit generator, is under increasing pressure to evolve beyond traditional IT services. Competitors are rapidly integrating generative AI and automation. The group also faces the enormous task of decarbonizing some of its most capital-intensive businesses. These include steel, energy, automotive manufacturing and aviation.
On the home front, Tata faces escalating competition across nearly every consumer-facing domain. In digital retail, logistics, aviation and EVs, it is now up against highly aggressive players.
Under Chanrasekaran, the group is currently executing several high-stakes transformation projects simultaneously. These include the turnaround of Air India, the expansion of Tata Electronics as a semiconductor and precision manufacturing player, and the EV revolution led by Tata Motors. Delays, cost overruns or missteps in any one of these large programmes could impact the group’s credibility or financial health. The execution risk is particularly acute given the sheer scale and ambition of these parallel transitions.
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