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Tata Chairman's Exit Leaves $350B Group at a Crossroads
Natarajan Chandrasekaran steps down after a decade reshaping the conglomerate into a technology and aviation powerhouse. The succession fight, tied to a boardroom split, leaves $350 billion in market cap watching for direction.
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Natarajan Chandrasekaran will step down as Tata Sons chairman in February 2027, ending a decade that reshaped the salt-to-software conglomerate. The announcement, made six months ahead of schedule, gives the board time to find a successor. The timing and the reason – a single board member withheld support for a third term – have put the group's leadership succession under a spotlight.
Chandrasekaran took over in 2017 after the sudden ouster of Cyrus Mistry. He had run Tata Consultancy Services for eight years, making it India's most valuable company. At the group level, he pushed into semiconductors, electronics manufacturing, battery gigafactories, and aviation. The acquisition of Air India in 2022 was his boldest bet. He also launched Tata Neu, a consumer internet platform, and invested in mobile technology.
His departure is tied to a regime change at Tata Trusts, which controls 66% of Tata Sons. Noel Tata, half-brother of Ratan Tata, became chairman of the trusts in October 2024 after Ratan Tata's death. Since then, several Ratan Tata loyalists have left both the trusts and the holding company. Chandrasekaran was seen as close to Ratan Tata. In his statement, he said the nomination and remuneration committee had approved his third term. One board member – Noel Tata – did not support it.
For investors, the question is what happens to the group's big bets. Air India is still in the red. Tata Digital, which runs Tata Neu, is burning cash. The semiconductor and battery plants are years from breaking even. Chandrasekaran had been tasked with reducing losses at those units and with finding a way to avoid listing Tata Sons, a demand from the Shapoorji Pallonji Group, which holds about 18%.
Tata Group companies include TCS, Tata Motors, Tata Steel, Tata Power, and Indian Hotels. TCS alone accounts for more than half the group's market value. Under Chandrasekaran, the group's revenue crossed $150 billion, according to a person familiar with the matter. The stock market has been watching the leadership vacuum. Shares of Tata Motors and Tata Steel have underperformed the Nifty 50 this year, partly on uncertainty over the group's direction.