N Chandrasekaran will leave the Tata Group chairman’s post in February after the board failed to reach unanimous agreement on extending his term, raising fresh questions about the future leadership of one of India’s biggest business empires.
Chandrasekaran, 63, said he would not seek reappointment when his current term ends in February 2027.
The decision comes months after Tata Sons, the holding company of the Tata Group, first considered extending his tenure for another five years. But the proposal failed to secure unanimous backing from the board.
Chandrasekaran said one board member opposed the extension when it was first discussed in February. He chose to defer the decision, but six months later there was still no agreement.
“In the absence of unanimous support, I chose to defer the decision,” Chandrasekaran said.
The announcement immediately raised concerns about what comes next for the sprawling conglomerate, which has interests ranging from steel and cars to airlines and technology.
Shares of several listed Tata companies fell sharply following the news as investors reacted to the uncertainty surrounding the group’s leadership.
The development also comes as tensions have reportedly grown within Tata Trusts, the charitable organisation that owns about 66% of Tata Sons.
Tata Trusts has three representatives on the Tata Sons board. Reports have pointed to disagreements over board appointments, funding decisions and the possible public listing of Tata Sons, although the group has not publicly commented on the reported disputes.
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The leadership uncertainty comes at a difficult time for the conglomerate. Tata is still dealing with major challenges, including the turnaround of Air India, which it bought from the Indian government in 2022, as well as pressure across several other businesses.
Chandrasekaran became Tata Group chairman in 2017, replacing Cyrus Mistry after his sudden removal triggered a lengthy legal battle.
He said clear leadership was particularly important because several major projects were at critical stages.
“Tata Sons is a very large institution,” he said, adding that employees, investors, business partners and other stakeholders needed clarity about who would lead the group beyond February.
His departure now leaves Tata Sons facing the difficult task of finding a successor while managing internal disagreements and major business decisions across the conglomerate.
