Third term for Chandrasekaran: Tata Trusts sidesteps retirement rules

Tata Sons will formally consider the Trusts' resolution to extend Chandrasekaran's term in 2027, marking the first time a Tata executive may serve beyond the retirement age of 65

The Tata Trusts have approved a potential third executive term for N Chandrasekaran, chairman of Tata Sons, breaking the long-standing Tata Group retirement policy, according to a report by The Economic Times. Chandrasekaran will be 65 when his current second term ends in February 2027. 

Traditionally, Tata executives step down from executive roles at 65, though they can continue in non-executive positions until 70.

The resolution by the Trusts will be formally considered by Tata Sons, the holding company, for approval of the third term starting 2027. This marks the first time a Tata executive may continue in a full executive role beyond the retirement age.

 

Proposal and approval

The proposal for Chandrasekaran’s extension was made by Noel Tata and Venu Srinivasan during the Trusts’ meeting on September 11. They cited the importance of leadership continuity during the group’s ongoing business transformations. The proposal was unanimously approved, the news report said. 

According to group rules, new terms are approved a year before expiry. Since Tata Trusts control 66 per cent of Tata Sons, their endorsement is decisive. The extension also comes amid internal debates on whether Tata Sons should remain privately held. 

Chandrasekaran first joined Tata Sons’ board in October 2016 and became chairman in January 2017. He was granted a second five-year term in February 2022. Under his leadership, the Tata Group nearly doubled revenue, more than tripled net profit, and increased market capitalisation, spending ₹5.5 trillion on strategic investments.   

 

Financial performance and expansion

Revenue across listed and unlisted entities reached ₹15.34 trillion in FY25, with net profit at ₹1.13 trillion. However, the group’s market capitalisation fell by nearly ₹6.9 trillion over the last year, largely due to a 30 per cent decline in shares of Tata Consultancy Services. 

During Chandrasekaran’s tenure, Tata Sons’ net worth rose to ₹1.49 trillion from ₹43,252 crore in 2018. The group expanded into electronics and semiconductors, digital services, groceries, pharmacy, fashion and acquired Air India, merging it with Vistara and AirAsia India. Other initiatives include Tejas Networks acquisition and battery gigafactories in India and the UK.