Are new battle lines being drawn in the Tata Trusts?

Tata

Barely weeks after the exit of long-time trustee Mehli Mistry, fresh tensions appear to be surfacing within the Tata Trusts—the controlling shareholder of Tata Sons. According to people familiar with ongoing deliberations, recent events around the induction of Neville Tata, son of Tata Trusts chairman Noel Tata, into the Sir Ratan Tata Trust has raised questions about internal alignments at a time when important governance decisions lie ahead.

Sources told Moneycontrol that Neville was initially expected to join both the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust, the two biggest shareholders of Tata Sons. The Sir Dorabji Trust cleared his appointment for a three-year term and approved the induction of veteran executive Bhaskar Bhat on November 11. At that time, trustee Venu Srinivasan’s previous term had already ended, and he was not a member of the board when the Sir Dorabji Trust made these appointments.

However, when Sir Ratan Tata Trust where Srinivasan was a trustee met to consider the same proposals, he blocked the move. People familiar with the discussions said that he is understood to have raised a procedural concern, pointing out that the induction of Neville Tata was not listed on the circulated agenda. While this resulted in the matter not being taken up at the Sir Ratan Trust meeting held on November 11 , those with knowledge of how the Trusts have historically managed their agenda said sensitive items are sometimes included under “other matters” for confidentiality.

The procedural concerns raised by Srinivasan regarding the appointment of Neville Tata was first reported by Mint on November 13.

The development is notable because Noel Tata and Venu Srinivasan had previously been viewed as broadly aligned during the internal kerfuffle that preceded Mehli Mistry’s exit.  Mehli—supported by trustees Darius Khambata, Jehangir H. C. Jehangir and Pramit Jhaveri—had expressed concerns over how information was being shared within the Trusts, according to people aware of those exchanges. These concerns were expressed in Trust meetings held in September and earlier. Vijay Singh was also not renominated on the Tata sons board after these 4 trustees opposed his renomination at a meeting of the Trustees board on September 11.

Seemingly because of these events. Mehli Mistry’s reappointment to the board of the Tata Trusts was eventually not carried through after Noel Tata, Venu Srinivasan and Vijay Singh opposed it. Mistry later withdrew a caveat filed with the Maharashtra Charity Commissioner and conveyed that he did not wish to pursue the matter further.

Meanwhile Srinivasan was reappointed to the Trusts, initially for a life-term though this was later reduced to three years because of Maharashtra government rules. The latter took place at the same meeting on November 11  at which Neville was appointed.

Against this backdrop, Srinivasan’s position regarding Neville’s induction has led some insiders to observe that earlier alignments within the Trusts may now be shifting, though it remains unclear how significant this change will prove.

Trust insiders also said that Venu Srinivasan played a significant role during the period when Noel Tata and Mehli Mistry were at odds. According to people familiar with those developments, Srinivasan was instrumental in coordinating several of Noel Tata’s outreach efforts at the time, including facilitating interactions with senior government functionaries including Union Home Minister Amit Shah, during that phase.

This internal recalibration comes as the Tata Sons board approaches a key decision. The Tata Trusts—through their nominee directors—had already conveyed in-principal support months ago for the continuation of Tata Sons chairman N. Chandrasekaran for another term.

The formal decision now rests with the Tata Sons board, which is expected to vote on his renewal. “The Trusts have taken their view, but the final call lies with the Tata Sons board,” a person familiar with the matter said. Emails queries sent to Tata Trusts, Tata Sons and Venu Srinivasan remained unanswered.

The broader backdrop adds complexity. Between October 2024 and October 2025, the combined market capitalisation of 23 listed Tata companies fell from around Rs 33.57 lakh crore to Rs 26.39 lakh crore—a decline of nearly Rs 7.18 lakh crore, or about 21%. Analysts attribute this to weaker demand in IT services and autos, global macro headwinds, and company-specific pressures across several businesses.

Latest disclosures from Tata Sons’ annual report point to a clear divergence between the financial trajectory of the wider Tata Group and that of its holding company. At the aggregate level, the group’s operating companies have continued to grow. Tata’s own disclosures show that the combined revenue of Tata companies rose from more than $165 billion in FY24 to over $180 billion in FY25, while data cited in the annual report pegs group-wide revenue at about Rs 15.34 lakh crore and net profit at Rs 1.13 lakh crore for FY25 across listed and unlisted entities.

Tata Sons’ standalone numbers tell a different story. The holding company reported total revenue of about Rs 38,835 crore in FY25, down from Rs 43,893 crore a year earlier, while net profit declined from roughly Rs 34,654 crore in FY24 to around Rs 26,232 crore in FY25. That translates into a drop of roughly 12 percent in revenue and about 24 percent in profit year-on-year.

Another area that has drawn attention among some trustees is the remuneration of N. Chandrasekaran. According to company disclosures for FY25, his total compensation was approximately Rs 155.81 crore—Rs 15.12 crore in salary and other benefits and Rs 140.69 crore as commission on profits—representing a 15 percent year-on-year rise. People familiar with the matter said some trustees have sought greater clarity around the appraisal and communication processes, viewing this as part of broader discussions on governance transparency.

Questions also remain about the long-term role that may eventually be envisaged for Neville Tata. While no proposal has been placed before either Trust or the Tata Sons board, people aware of internal conversations said succession and leadership planning at the group level often evolve over long horizons, and various possibilities may be assessed gradually.

With internal alignments shifting, a key board vote approaching and questions around leadership transitions still open, the coming months are likely to be closely watched across the group’s ecosystem. As one person familiar with the Trusts’ functioning observed, “This is a phase where every step is being weighed carefully, and nothing can be assumed until the boards take their final calls.”