N. Chandrasekaran Creates History at Tata Sons with Rare Third Term, a Milestone Even Ratan Tata Didn’t Achieve

N. Chandrasekaran, Chairman of Tata Sons, has achieved a historic milestone by securing a third executive term at the group — something even Ratan Tata never accomplished. According to sources cited by the Economic Times, the Tata Trusts have approved a third term for Chandrasekaran, bypassing the group’s usual retirement policy, which typically expects executives to step down at 65. Chandrasekaran will turn 65 in February 2027, at the conclusion of his second term.

While the group’s policies mandate retirement from executive roles at 65, they allow continuation in non-executive roles until 70. However, the Trusts have decided that executive leadership continuity is essential to oversee critical projects such as semiconductors, EV battery development, and Air India operations.

First-Time Exception in Tata Group History

High-ranking sources revealed that Noel Tata and Venu Srinivasan proposed Chandrasekaran’s five-year third executive term at the Tata Trusts meeting on September 11. The proposal was unanimously approved. The official announcement will be formalized by Tata Trusts in February 2026, one year before the new term begins. Tata Sons, the holding company with 66% stake owned by Tata Trusts, will implement the decision.

This marks the first time in Tata Group history that an executive will continue in an active role beyond the usual retirement age, reflecting the strategic importance of leadership continuity during this critical period.

Strategic Importance Amid Internal Debates

The extension comes amid debates within the Trusts about whether Tata Sons should remain privately held. Some trustees are reviewing a previous resolution that emphasized private ownership of Tata Sons. In this backdrop, Chandrasekaran’s continued executive leadership is seen as vital to navigating the group through complex challenges.

Extension Was Anticipated, Not Surprising

Catalyst Advisors MD Ketan Dalal commented that while the extension may seem unusual, it is understandable given the group’s strategic position. Tata is currently facing internal and external pressures, including the Air India integration, rising geopolitical tensions, and market pressures related to the potential Tata Sons IPO.

Additionally, the group is making bold moves in strategic sectors such as semiconductors, defense, and aviation. Chandrasekaran was appointed for his second five-year term in February 2022, and initially joined the Tata Sons board in October 2016, becoming Chairman in January 2017.

Tata Group Performance Under Chandrasekaran

Under Chandrasekaran’s leadership over the past five years, Tata Group:

• Invested ₹5.5 lakh crore and nearly doubled revenue

• Tripled net profits and market capitalization

For FY25, revenue across all listed and unlisted entities reached ₹15.34 lakh crore, with net profit at ₹1.13 lakh crore. However, over the past year, market cap decreased by ₹6.9 lakh crore, largely due to a 30% decline in TCS share price, bringing it to ₹26.5 lakh crore as of October 10, 2025.

During his tenure, Tata Sons’ total assets grew from ₹43,252 crore in 2018 to ₹1.49 lakh crore, and the group entered new businesses, including:

• Tata Electronics for semiconductors, assembly, and testing

• Tata Digital with an omni-channel platform via Tata Neu

• Expansion into electronics (Croma), groceries (BigBasket), pharmacy & diagnostics (Tata 1mg), and fashion (Tata CLiQ)

• Air India acquisition after 69 years, merging Vistara and AirAsia India into Air India and Air India Express

• Acquisition of Tejas Networks to build an indigenous mobile network stack

• Establishing battery gigafactories in India and the UK

Chandrasekaran’s leadership is credited with strategically diversifying and strengthening Tata Group while steering it through major transformations.