Tata Trusts clear third term for N Chandrasekaran, first executive to extend beyond 65: Report

Chandrasekaran was granted a second five-year term in February 2022. A Tata Consultancy Services (TCS) veteran, he joined the Tata Sons board in October 2016 and was appointed chairman in January 2017

In a first for the Tata Group, the Tata Trusts approved a third executive term for N Chandrasekaran, chairman of Tata Sons, according to people aware of the matter, reported Economic Times. Chandrasekaran will be 65 at the conclusion of his second term in February 2027.

Under Tata Group policy, executives are generally expected to step down from such roles at 65, though they may continue in non-executive positions until 70.

“For the sake of continuity in functioning, it was felt that executive leadership was necessary to see through critical projects like semiconductors, batteries for electric vehicles and Air India,” one person told Economic Times.

The resolution from the Trusts has been sent to Tata Sons, which will need to approve the third term from 2027, the person added.

Guiding Tata Through a Critical Period

According to highly placed executives cited by Economic Times, Noel Tata and Venu Srinivasan proposed a third five-year executive term for Chandrasekaran during a Tata Trusts meeting on September 11, highlighting the need for continuity in the group’s business transformation. The resolution was approved unanimously.

Tata Trusts did not comment to Economic Times.

As per group rules, new terms are typically approved a year before the current term ends, with formalisation expected in February 2026. Tata Trusts, which controls 66% of Tata Sons, will be responsible for this approval. This marks the first time a group executive will remain in an active executive role beyond the standard retirement age.

The extension comes amid internal debate within Tata Trusts over whether Tata Sons should remain privately held. Some trustees are reconsidering a July resolution maintaining the company’s private status. Chandrasekaran’s continued executive role is seen as important in managing this complex phase, according to sources cited by Economic Times.

Continuity Considered Crucial for Tata’s Growth

Ketan Dalal, managing director of consulting firm Katalyst Advisors, told Economic Times that while the extension may appear unusual, it is not entirely unexpected given the group’s strategic priorities.

“Tata is an extraordinary and respected conglomerate, but it is currently navigating a complex landscape of internal and external challenges, from the Air India incident and rising geopolitical tensions to increasing market pressure around a potential Tata Sons IPO,” Dalal said. “At the same time, the group is making bold bets on strategic growth areas such as semiconductors, defence and aviation.”

Chandrasekaran was granted a second five-year term in February 2022. A Tata Consultancy Services (TCS) veteran, he joined the Tata Sons board in October 2016 and was appointed chairman in January 2017, reported Economic Times.

Tata’s Growth Under Chandrasekaran

Under Chandrasekaran’s leadership, the Tata Group nearly doubled revenue and more than tripled net profit and market capitalisation over the past five years, during which it spent ₹5.5 lakh crore, Economic Times reported. Revenue from all listed and unlisted entities reached ₹15.34 lakh crore in FY25, with net profit at ₹1.13 lakh crore.

However, over the past year, the group’s market capitalisation has declined by nearly ₹6.9 lakh crore to ₹26.5 lakh crore as of October 10, 2025, mainly due to a nearly 30% fall in TCS shares.

During his tenure, Tata Sons’ net worth increased to ₹1.49 lakh crore from Rs 43,252 crore in 2018. The group also established new businesses under his leadership, including Tata Electronics’ entry into semiconductor manufacturing, Tata Digital’s omni-channel platform Tata Neu, and acquisitions in electronics, grocery, pharmacy, and fashion.

Additionally, Air India returned to the Tata Group after 69 years, with Vistara and AirAsia India merged into Air India and Air India Express, respectively. The group also acquired Tejas Networks, is developing an indigenous mobile network stack, and is setting up battery gigafactories in India and the UK, according to Economic Times.

The Trusts’ decision reflects an endorsement of Chandrasekaran’s leadership and a desire for stability amid structural and shareholder shifts at the conglomerate. While other executives, including Noel Tata, stepped down from active roles at 65 and continue in non-executive capacities, the retirement norm has been formally waived only for Chandrasekaran, reported Economic Times.