Tata stocks fall after Tata Sons chairman says he will quit

Several Tata Group stocks fell on Wednesday after Tata Sons chairman N. Chandrasekaran said he would not seek reappointment when his term ends on February 20, 2027, leaving India's largest conglomerate to choose a successor.

Tata Motors fell more than three percent, Tata Steel was down about two percent and Tata Communications lost more than one percent after the announcement. Tata Consultancy Services was down five percent Wednesday, after falling more than 20 percent over the past year amid a slowdown in global technology spending and threats from generative AI software.

Chandrasekaran, 63, said he had told the Tata Sons board that he would step down when his tenure ends, after directors failed to decide on his future. He said the issue of his reappointment had been under discussion for six months without resolution.

“I have asked the Board to decide on the succession soon to ensure a proper transition,” he said, adding that several major strategic projects were at critical stages and that leadership clarity was important for employees, investors, partners and other stakeholders.

Tata Sons is the single largest shareholder in companies including TCS and Tata Motors, which owns British luxury car maker Jaguar Land Rover. Tata Trusts owns about 66 percent of Tata Sons, giving it decisive influence over the group's governance.

The move follows deferred deliberations in February on Chandrasekaran's reappointment after disagreement among board members over issues including losses at some group companies. Indian media have reported tensions over the group's strategic direction. The Economic Times reported this year that Noel Tata, head of Tata Trusts and half-brother of late chairman Ratan Tata, sought conditions for Chandrasekaran's reappointment, including limits on large capital spending in high-risk ventures.

Chandrasekaran, a former chief executive of TCS, became chairman of Tata Sons in 2017 after a boardroom battle that led to the ouster of Cyrus Mistry. Tata's effort to revive Air India after buying it from the government in 2022 has also faced operational setbacks, including a June 2025 crash near Ahmedabad that killed 241 of the 242 people on board and 19 people on the ground.