N Chandrasekaran gets historic extension as Tata bets big on semiconductors, EVs, and Air India
Under group rules, directors are expected to leave such roles at age 65, but can remain in non-executive roles until age 70.
“For the sake of continuity in operation, it was felt that executive leadership was required to deliver critical projects such as semiconductors, batteries for electric vehicles and Air India,” one of the people said.
“The trust decision has been sent to Tata Sons and it will of course have to decide while approving the third term from 2027,” the person said.
Navigating a complex stage
Noel Tata and Venu Srinivasan proposed a third five-year management term for Chandrasekaran at a Tata Trusts meeting on September 11, citing the importance of continuity for the group’s ongoing business transformation, senior executives familiar with the matter said. The decision was accepted unanimously.
Tata Trusts did not comment.
According to the rules, it is approved a year before the end of a new term and accordingly the decision will be formalized in February next year by Tata Trusts, which controls 66% of the conglomerate’s holding company Tata Sons. This also marks the first time a group director will remain in an active manager role after crossing the retirement threshold.
The extension comes at a time when Tata Trusts are at loggerheads over whether Tata Sons will remain private. Several trustees are currently reconsidering a decision taken in July to keep Tata Sons privately owned. Against this backdrop, Chandrasekaran’s continued executive leadership is seen as crucial to steering the group through a complex phase.
Extension not unexpected
Ketan Dalal, managing director of consultancy firm Katalyst Advisors, said the extension may seem unusual but was not entirely unexpected given the critical juncture the group is in.
“Tata is an outstanding and respected conglomerate, but it is currently navigating a complex landscape of internal and external challenges, from the Air India affair and rising geopolitical tensions to mounting market pressure regarding a potential Tata Sons IPO,” he said. “The group is also making bold investments in strategic growth areas such as semiconductors, defense and aerospace.”
Chandrasekaran was given a second five-year term in February 2022. A Tata Consultancy Services (TCS) veteran, he first joined Tata Sons’ board in October 2016 and was appointed chairman in January 2017.
Financials
Under his management, the Tata Group has almost doubled its revenue and more than tripled its net profit and market capitalization in the last five years, during which it spent ₹5.5 lakh crore. Revenue from all listed and unlisted entities stood at ₹15.34 lakh crore in FY25, while net profit stood at ₹1.13 lakh crore.
However, last year, the group’s market capitalization fell by nearly ₹6.9 lakh crore to ₹26.5 lakh crore as on October 10, 2025, driven by an almost 30% fall in the share price of TCS, the largest company in the Tata stable.
During his tenure, Tata Sons’ net worth rose from ₹43,252 crore to ₹1.49 lakh crore in 2018. His leadership also saw the group establish new businesses to capitalize on significant opportunities. These include Tata Electronics’ entry into electronics and semiconductor manufacturing, assembly and testing. Apart from forging ahead in electronics (Croma), grocery (BigBasket), pharmacy and diagnostics (Tata 1mg) and fashion (Tata Cliq), Tata Digital has built an omni-channel platform with its Tata Neu digital app.
Additionally, Air India returned to the Tata Group after 69 years. Vistara and AirAsia India were merged into Air India and Air India Express respectively. Tata Group also acquired Tejas Networks; is building a domestic mobile network stack and building battery gigafactories in India and the UK.
The trusts’ decision marks an endorsement of Chandrasekaran’s leadership and his desire to ensure stability amid complex shareholder and structural changes at the conglomerate. Noel Tata, for example, stepped down from executive responsibilities at the age of 65 but continues to work as a non-executive chairman of various Tata entities; this norm is now officially waived only for Chandrasekaran.
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