N Chandrasekaran set for third term as Tata Sons calls EGM; TCS to present AI roadmap: Report

Board to consider exception to retirement policy as TCS outlines AI strategy amid tech stock volatility

• Tata Sons to seek shareholder nod for Chandrasekaran's third term
• Move signals leadership continuity amid major capital commitments
• TCS to brief board on AI strategy after tech stock sell-off

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Tata Sons is preparing to convene an extraordinary general meeting to secure shareholder approval for reappointing N Chandrasekaran as executive chairman for a third term, according to a report by The Economic Times. The move comes a year before his current term ends and signals continuity at the top as the group navigates heavy capital commitments and technology disruption.

The resolution will require an exception to the retirement policy that applies to non-executive roles after the age of 65. A similar waiver was granted in 2016 when Ratan Tata succeeded Cyrus Mistry as chairman. Chandrasekaran, who took charge in 2017, will turn 63 in June.

Tata Trusts, the majority shareholder of Tata Sons, had already passed a unanimous resolution in October last year to reappoint Chandrasekaran in an executive role, The Economic Times reported.

Executives cited by The Economic Times said reappointing Chandrasekaran in an executive capacity is aimed at signalling leadership continuity. The group has committed $120 billion across semiconductors, electric vehicle batteries and Air India — capital-intensive bets that require long execution cycles.

“Chandrasekaran brings exceptional executional capability to the table. The scale that he has brought to the group since taking over in 2017 is clearly visible,” a highly placed executive told The Economic Times.

Over the past five years, the Tata Group nearly doubled revenue and more than tripled net profit and market capitalisation, while spending Rs 5.5 lakh crore to become “future fit,” Chandrasekaran said in the latest annual report.

Separately, the top management of Tata Consultancy Services will make a presentation to the Tata Sons board next week on its artificial intelligence pivot, people with knowledge of the matter told The Economic Times.

The presentation is aimed at addressing board concerns following a stock market sell-off in technology stocks, including TCS, amid rapid AI-led innovations. Increased oversight comes as global AI advancements, including tools such as Claude Cowork, raise questions over traditional IT services business models.

The board will also receive updates on Tata Electronics and Air India, executives told The Economic Times. Tata Sons did not comment.

The leadership decision comes against a mixed financial backdrop. Tata Sons posted a 24 percent rise in FY25 revenue to Rs 5.92 lakh crore, while net profit fell 17 percent to Rs 28,898 crore, according to its annual report.

The company said FY25 began with optimism, supported by expectations of macroeconomic stability, global growth and easing inflation. That narrative shifted as trade policy uncertainty rose sharply.

Chandrasekaran has said that by FY27, all new businesses will rank among the top five group companies by revenue and turn profitable. Air India, however, may take longer to achieve profitability and faced a difficult 2025, marked by the Ahmedabad air crash.