Tata Sons board meeting today: Losses, leadership to be in focus; what to expect

The Tata Sons board is scheduled to meet today to discuss the performance of the group’s loss-making businesses and the way forward. The meeting is important as the reappointment of chairman N Chandrasekaran, which was not approved at the last board meeting on February 24, remains a key issue amid rising tensions within the group.

It remains to be seen if Chandrasekaran’s reappointment would be taken up at this meeting. Meanwhile, individual companies, especially those facing losses, are expected to present updates on their business status and future plans.

Chandrasekaran, known as Chandra within the group, took charge in February 2017 for a five-year term, which was renewed in 2022 for another five years. His current term ends in February next year, leaving some time before a decision is needed. However, the failure to reappoint him earlier this year has drawn attention.

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Noel Tata, chairman of Tata Trusts and half-brother of Ratan Tata, is central to the discussions. Tata Trusts holds 66 per cent of Tata Sons’ equity and can nominate one-third of its board. Noel Tata and Venu Srinivasan, chairman emeritus of TVS Motor, represent Tata Trusts on the board. Noel Tata took charge of Tata Trusts in October 2024 after being elected unanimously. Since then, he and Srinivasan are reported to have serious differences, particularly over the listing of Tata Sons. Noel Tata opposes listing, while Srinivasan and Vijay Singh, former Defence Secretary and vice-chairman of Tata Trusts, support it.

At the last board meeting, Noel Tata reportedly questioned high capital expenditure on new ventures including semiconductors, and losses at Tata Digital and Air India. Srinivasan and others defended Chandrasekaran, noting these businesses have long gestation periods. In the Tata Sons system, the chairman’s reappointment requires unanimous approval, and this disagreement has complicated the process. Noel Tata has also maintained that Tata Sons should remain unlisted, although RBI rules make this difficult.

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According to reports, Chandrasekaran and Noel Tata met over the weekend to discuss company performance ahead of the meeting. Reports indicate the group’s unlisted businesses posted a loss of Rs 10,905 crore in FY25, which could rise to Rs 29,000 crore. Noel Tata is said to be concerned about mounting losses at Tata Sons, especially in new businesses launched under Chandrasekaran, including Tata Digital, electronics ventures, and Air India, which was acquired from the government a few years ago.

The question of Chandrasekaran’s continuation remains unresolved. Options include another five-year term, a shorter two-year term until he turns 65 in 2028, or further deferral. Srinivasan’s reappointment to Tata Trusts is also pending and has been delayed twice. If he does not secure another term, his position on the Tata Sons board may be uncertain.

The broader context is a period of top-level friction within the Tata group, including expulsions or attempts to expel some members and the postponement of a decision on Chandrasekaran’s continuation. Noel Tata remains opposed to taking Tata Sons public through an initial public offering. Tata Sons, classified by the RBI among the top 15 non-bank finance companies, is required to list.