Tata group stocks fall up to 4% as N Chandrasekaran steps down as chairman
Shares of Tata Group companies came under pressure and fell by as much as 4%, after Tata Sons Chairman N Chandrasekaran resigned ahead of the conglomerate’s annual general meeting (AGM) scheduled for August 18. The decline was led by Tata Consultancy Services (TCS), the group’s most valuable listed company.TCS shares dropped more than 4% to Rs 2,322. Tata Motors Passenger Vehicles (TMPV) also declined 4%, while Tata Consumer Products and Tata Power were each down about 2%.Chandrasekaran’s resignation marks an unexpected end to a tenure of nearly 10 years during which he reshaped India’s largest business group, expanding its presence across sectors including airlines, semiconductors, electronics, batteries and digital businesses.
N Chandrasekaran steps down as Tata Sons Chairman
People familiar with the matter told ET that the 63-year-old informed the Tata Sons board of his decision. He is expected to remain in office until the completion of his term as chairman in February 2027.His departure has wider implications for the conglomerate, as he also serves as chairman of Tata Consultancy Services, Tata Motors, Tata Consumer Products and several other Tata Group companies. Since assuming charge of Tata Sons in 2017, he has played a pivotal role in overseeing the group’s businesses.The decision comes amid uncertainty surrounding the August 18 AGM and the position Tata Trusts, which holds about 66% of Tata Sons, will take during the meeting. Tata Trusts Chairman Noel Tata is understood to be opposed to Chandrasekaran continuing in the role.The Tata Group witnessed substantial expansion during Chandrasekaran’s leadership. According to figures released by the conglomerate, aggregate revenue increased from Rs 7.89 lakh crore in FY20 to Rs 16.24 lakh crore in FY26.During the same period, profit after tax grew more than fivefold, rising from Rs 32,000 crore to Rs 1.71 lakh crore.The combined market capitalisation of the group’s listed companies climbed from Rs 9.31 lakh crore in FY20 to Rs 24.39 lakh crore in FY26, although it had reached Rs 27.85 lakh crore in FY25.After successfully leading Tata Consultancy Services, Chandrasekaran assumed charge of Tata Sons in 2017, becoming the first professional executive from outside the Tata family to head the holding company after Ratan Tata.Chandrasekaran’s resignation leaves Tata Sons preparing for a leadership transition several months before the expiry of his current term, at a time when the conglomerate is undertaking some of its biggest investments in emerging businesses.
