Tata Board Meeting Silent On Chandra's Extension

The much-awaited board meeting of Tata Sons did not discuss listing of the holding company or a third term for Chairman N Chandrasekaran.

A daylong marathon board meeting at Bombay House on Tuesday, May 26, 2026 may have resembled a roadshow filled with slides of Tata companies' top line, bottom line, EPS (earnings per share), and more, but the review session was seen as a key step in engaging with Tata Trusts -- the largest shareholder in the parent company of the salt-to-software conglomerate.

The much-awaited board meeting of Tata Sons did not discuss listing of the holding company or a third term for Chairman N Chandrasekaran (Chandra, as he's called).

Both are likely to figure in the next board meeting on June 12, sources said.

Air India Profitability Questions

In a unique development, a special Tata Sons board meeting was called on May 26 to discuss the financial numbers, projections, and strategic plans of some of the loss-making group entities.

Many chief executive officers, armed with their PowerPoint presentations, were part of the meeting.

This was in response to questions raised by Tata Trusts Chairman and nominee director Noel Tata at the February 24 Tata Sons board meeting.

He had questioned the profitability of companies such as Air India, Tata Digital, and Tata Electronics, while linking the same to Chandra getting a third term as executive chairman of Tata Sons with effect from February 2027.

This was seven months after the July 2025 resolution of Tata Trusts endorsing Chandra for a third five-year term.

Tata Digital Growth Strategy

Sources described Tuesday's meeting -- from 10 am to 4.30 pm with a lunch break in between -- as an "involved interaction", with several questions being posed to the CEOs, including Campbell Wilson of Air India, Randhir Thakur of Tata Electronics, and Sajith Sivanandan of Tata Digital.

On whether the meeting was pleasant, a board member said: "It was normal."

Tata Electronics Expansion Plans

Noel is learnt to be "satisfied" with the outcome of the meeting, while giving his feedback and asking further questions on some aspects of the new-age businesses, which are typically more capital-intensive.

Sources indicated that there could be subsequent sessions with Tata group companies.

Neither Tata Sons nor Tata Trusts commented on Tuesday's board meeting.

Chandra Third Term Review

Even as a meeting of Tata Trusts was scheduled for June 8, there is uncertainty around it because of the recent directive from the Maharashtra Charity Commissioner barring the Sir Ratan Tata Trust, one of the core shareholders of Tata Trusts, from holding meetings.

Tata Trusts is expected to discuss the third term of Chandra, 62, before the Tata Sons board takes it up.

Tata Sons Listing Debate

In the meantime, the Reserve Bank of India may take a call on the future course of action related to Tata Sons' listing on stock exchanges.

In September 2022, the RBI had categorised Tata Sons as among the upper-layer CICs (core investment companies), mandating listing within three years.

While Tata Sons cleared all its debts and applied for deregistration as a CIC in 2024, the RBI has not spelt out its decision yet.

The various stakeholders of the Tata universe are split on the issue of listing Tata Sons.

The largest shareholder, Tata Trusts -- with 66 per cent in Tata Sons -- sought to retain the holding company as a private entity in a July 2025 resolution.

Amid infighting within Tata Trusts, both its vice-chairmen recently favoured listing.

The second-largest shareholder, Shapoorji Pallonji, is backing the listing of Tata Sons.

Feature Presentation: Ashish Narsale/Rediff