Under group rules, executives are expected to step down from such roles at 65 although they can remain in non-executive capacities 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,” said one of the persons.
“The Trusts resolution was sent to Tata Sons, which will of course have to decide when approving a third term from 2027,” the person said.
Navigating a complex phase
Highly placed executives close to the matter said Noel Tata and Venu Srinivasan proposed a third five-year executive term for Chandrasekaran at the Tata Trusts meeting on September 11, citing the importance of continuity for the group’s ongoing business transformation. The resolution was unanimously approved.
Tata Trusts did not comment.
As per the rules, a new term is approved a year before it ends and accordingly the decision will be formalised next year in February by Tata Trusts, which controls 66% of Tata Sons, the holding company of the conglomerate. This also marks the first time a group executive will remain in an active executive role past the retirement threshold.
The extension comes amid a rift within Tata Trusts on whether Tata Sons should remain private. A few trustees are now reconsidering a July resolution that Tata Sons should stay privately held. Against this backdrop, Chandrasekaran’s continued executive leadership is seen as crucial to steer the group through a complex phase.
Extension not unexpected
Ketan Dalal, managing director of consulting firm Katalyst Advisors, said the extension may appear unusual but is not entirely unexpected given the crucial juncture the group finds itself at.
“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,” he 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 had first joined the board of Tata Sons in October 2016 and was appointed chairman in January 2017.
Financials
Under his helm, the Tata Group nearly doubled revenue and more than tripled net profit and market capitalisation over the past five years when it spent ₹5.5 lakh crore. Revenue from all listed and unlisted entities was ₹15.34 lakh crore in FY25 with net profit at ₹1.13 lakh crore.
However, over the last year, the group’s market cap has fallen by nearly ₹6.9 lakh crore to ₹26.5 lakh crore as of October 10, 2025, dragged down by a near 30% decline in the share price of TCS, the largest company in the Tata stable.
During his tenure, Tata Sons’ net worth has risen to ₹1.49 lakh crore from ₹43,252 crore in 2018. His leadership also saw the group set up new businesses to capitalise on key opportunities. These include Tata Electronics’ entry into electronics and semiconductor manufacturing, assembly and testing. Tata Digital has set up an omni-channel platform with digital app Tata Neu besides pushing ahead into electronics (Croma), grocery (BigBasket), pharmacy and diagnostics (Tata 1mg) and fashion (Tata Cliq).
In addition, Air India returned to the Tata Group after 69 years. Vistara and AirAsia India were merged with Air India and Air India Express, respectively. The Tata Group also acquired Tejas Networks, is building an indigenous mobile network stack and setting up battery gigafactories in India and the UK.
The Trusts’ decision signals an endorsement of Chandrasekaran’s leadership and a desire to ensure stability amid complex shareholder and structural shifts at the conglomerate. Noel Tata, for instance, stepped down from executive responsibilities at 65 but continues as non-executive chairman at various Tata entities—a norm now formally waived only for Chandrasekaran.
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