3rd term for Chandrasekaran? Tata Trusts sidesteps retirement rule in a first, says report

Tata Trusts has reportedly okayed a third executive term for Tata Sons Chairman N Chandrasekaran, bypassing the group’s retirement policy for the first time, The Economic Times reported.

Chandrasekaran, who will turn 65 in February 2027, would normally be required to step down under group rules that cap executive roles at that age. However, the Trusts, the paper said, made an exception to ensure continuity as Tata navigates major strategic initiatives in semiconductors, EV batteries, and the turnaround of Air India.

“For the sake of continuity in functioning, it was felt that executive leadership was necessary to see through critical projects,” a person familiar with the discussion was quoted by the paper.

The resolution, proposed by Noel Tata and Venu Srinivasan, was unanimously passed at a Trusts meeting on September 11 and sent to Tata Sons, which is expected to formalize the third term in February 2026. 

Tata Trusts, which owns 66% of Tata Sons, did not comment. Business Today could not independently verify the development. The story will be updated if Tata Trusts issues a statement.

The move marks a significant break from internal norms. While executives may remain in non-executive roles until 70, this is the first formal waiver for an active leadership position. Noel Tata, for instance, stepped down from executive duties at 65 but continues in non-executive roles.

The extension comes as the group faces internal rifts over whether Tata Sons should go public. A July resolution backing its private status is reportedly under review. Against this backdrop, Chandrasekaran’s presence is seen as a stabilizing factor.

Under Chandrasekaran, the group nearly doubled revenue and tripled profit. FY25 revenue hit ₹15.34 lakh crore, with profit at ₹1.13 lakh crore. 

Still, a 30% drop in TCS stock has pulled group market cap down by ₹6.9 lakh crore in the past year.