2 weeks ago
Chandrasekaran Steps Down as Tata Sons Chairman Amid Rift
The Tata Group is one of India's biggest business families, with companies that run airlines, software, and many other things.
For a long time, the boss of the whole group was a man named N Chandrasekaran.
He joined the company in 1987 as a trainee and worked his way up to become chairman in 2017.
Now, after almost 40 years, he has decided to step down.
His relationship with Noel Tata, who leads the Tata Trusts, became very difficult.
They disagreed about how to spend money, how to run the company, and whether Tata Sons should be listed on the stock market.
Some of the newer businesses, like the airline Air India, are losing a lot of money.
The group also dealt with a plane crash and a cyberattack on its car company, Jaguar Land Rover.
But the whole group still made more profit than the year before.
Now the Tata Group has to find a new leader, just like it did nearly a decade ago when Cyrus Mistry left.
N Chandrasekaran is stepping down as chairman of Tata Sons after nearly 40 years with the Tata Group, amid a worsening relationship with Tata Trusts Chairman Noel Tata.
The rift was driven by policy differences over capital allocation, governance, and the potential listing of Tata Sons.
Air India and Air India Express posted a combined loss of ₹22,238 crore in FY26, more than double the previous year's ₹10,859 crore loss, while Tata Digital lost ₹4,974 crore.
Tata Sons' board reviewed turnaround strategies for Air India, Tata Digital and Tata Electronics, even as group net profit rose 22% to ₹31,961 crore in FY26.
Noel Tata sought a commitment that Tata Sons would never be publicly listed, but Chandrasekaran was unwilling to give one; the Reserve Bank of India (RBI) retains Tata Sons as an upper layer NBFC requiring listing.
- Who
- N Chandrasekaran, Ratan Tata's chosen successor as Tata Sons chairman, and Tata Trusts Chairman Noel Tata, whose policy differences drove the leadership change.
- What
- Chandrasekaran is stepping down as Tata Sons chairman after nearly 40 years with the group, following disagreements over capital allocation, governance, and a possible listing of Tata Sons.
- Where
- India, across Tata Group businesses including Air India, Tata Digital, and Tata Consultancy Services.
- When
- The decision was reported on August 12, 2026; Chandrasekaran had led Tata Sons since January 2017 and joined the group in 1987.
- Why
- Friction with Noel Tata over capital allocation, governance, and the potential listing of Tata Sons, compounded by mounting losses in new-age ventures such as Air India and Tata Digital.
Noel Tata / Tata Trusts position
Chandrasekaran / Tata Sons leadership position
Capital allocation to new-age businesses
Noel Tata / Tata Trusts position
Noel Tata was unhappy with capital allocation, with aviation, digital, electronics, semiconductors and batteries continuing to be capital guzzlers.
Chandrasekaran / Tata Sons leadership position
Chandrasekaran committed substantial capital to long-gestation new-age businesses and told shareholders the airline turnaround would be a five-to-10-year journey.
Potential listing of Tata Sons
Noel Tata / Tata Trusts position
Noel Tata sought a commitment that Tata Sons would never be publicly listed.
Chandrasekaran / Tata Sons leadership position
Chandrasekaran was unwilling to guarantee this due to regulatory and strategic flexibility considerations, especially as the RBI classifies Tata Sons as an upper layer NBFC requiring mandatory listing.
Key facts
- Outgoing chairman
- N Chandrasekaran
- Tenure with the group
- Nearly 40 years (joined TCS in 1987)
- Chairman since
- January 2017
- Tata Trusts chairman
- Noel Tata
- Air India FY26 combined loss
- ₹22,238 crore, more than double the previous year's ₹10,859 crore
- Tata Digital FY26 loss
- ₹4,974 crore
- Tata Sons FY26 net profit
- ₹31,961 crore, up 22%
- TCS profit pressure
- Margin disruptions caused by artificial intelligence across various sectors
- RBI classification of Tata Sons
- Upper layer NBFC, requiring mandatory stock exchange listing










