Chandrasekaran Set to Get Third Term as Tata Sons Chairman; Retirement Policy Exception Likely

New Delhi: N. Chandrasekaran, the Chairman of Tata Sons, is likely to be granted a third term, with the company preparing to propose the extension at an upcoming Extraordinary General Meeting (EGM) next week. If approved, this move would be an exception to Tata Sons’ retirement policy, similar to the waiver granted to Ratan Tata in 2016 when he succeeded Cyrus Mistry as Chairman.

Chandrasekaran will turn 63 in June, and the proposed extension would allow him to continue beyond the standard retirement age of 65 in a non-executive capacity. His current second term still has a year to run.

Approval Backed by Tata Trusts
Last October, Tata Trusts, the majority shareholder of Tata Sons, had passed a proposal supporting Chandrasekaran’s reappointment. Sources indicate that TCS top management will present an Artificial Intelligence update to the Tata Sons board next week. The recent surge in AI has impacted tech stocks, particularly after the US-based AI developer Anthropic launched the Claude Cowork tool, which poses a potential threat to traditional IT services business models.

Tata Group Performance
The board will also be updated on recent developments in Tata Electronics and Air India. FY2025 was challenging for the Tata Group: revenue rose 24% to ₹5.92 lakh crore, while net profit fell 17% to ₹28,898 crore. The holding company’s stake in group companies ranges from 8% to 71.75%, with dividends from these companies forming a significant part of its income.

Overall, for FY2025, Tata Group’s listed and unlisted companies generated ₹15.34 lakh crore in revenue and ₹1.13 lakh crore in net profit, with a current market capitalization of ₹24.39 lakh crore. Chandrasekaran was appointed for his second term in February 2022, having joined the Tata Sons board in October 2016 and been elevated to Chairman in January 2017.