Tata Sons May 26 Board Meet: Formal Discussion on Chandrasekaran’s Reappointment Unlikely; What Else to Expect

Tata Sons’ board of directors is set to meet on Tuesday, May 26, with discussions likely to focus on the group’s loss-making businesses, according to a PTI report citing sources.

Sources told PTI that individual companies, particularly those currently under financial pressure, are expected to present updates on their business performance and future strategy before the board.

The report added that any formal discussion on the reappointment of Tata Sons Chairman N Chandrasekaran for a third term is unlikely to take place at the meeting, despite speculation around the issue in recent months and reports of internal differences within the group.

The meeting comes amid concerns over losses at several Tata Group businesses, including Air India, Tata Digital, Tata Electronics and Tata Projects. The board is expected to seek greater clarity on reducing losses, improving returns and outlining a roadmap to profitability.

Air India is likely to remain under focus after reporting a net loss of around ₹10,859 crore in FY25, with reports suggesting losses could widen further in FY26 due to restructuring and aircraft upgrade costs.

Questions Over Expansion

Noel Tata is not against the Tata Group expanding into new-age businesses, including strategically important sectors such as semiconductors. The group has significantly increased investments in semiconductor expansion through Tata Electronics, including the $11 billion Dholera semiconductor fab and partnerships with ASML, along with a growing focus on AI infrastructure and data centre capacity in India.

However, he is believed to have sought greater clarity on capital allocation, sustainability of long-term investments, and the overall strategic direction of the conglomerate.

Chandrasekaran is now expected to present an updated business roadmap before the board, as the strategy shared last year is reportedly being viewed as outdated amid shifting market conditions, rising capital commitments, and changing realities across businesses such as aviation, digital commerce, and electronics manufacturing.

Tata Sons Listing Issue

The board meeting also comes against the backdrop of the Tata Sons listing issue. In September 2022, the Reserve Bank of India (RBI) classified Tata Sons as an upper-layer Non-Banking Financial Company (NBFC-UL) under its Scale-Based Regulation framework, which required the company to list by September 2025.

However, in 2025, Tata Sons disclosed that it had surrendered its registration as a Core Investment Company (CIC) under RBI regulations and sought exemption from the mandatory IPO requirement.

Chandrasekaran is also expected to articulate the group’s long-term stance on whether Tata Sons should remain unlisted, an issue that has remained sensitive within the Tata ecosystem over the past few years.