N Chandrasekaran asked the Tata Sons board to postpone discussions on extending his tenure after differences emerged.
Noel Tata flagged losses in new and acquired businesses, while other directors said these were expected from long-gestation investments.
Chandrasekaran stressed that any decision should come when Tata Sons and Tata Trusts are fully aligned on strategy.
Citing the need for alignment between key stakeholders within the Tata Group, Tata Sons Executive Chairman N Chandrasekaran has requested that discussions on extending his tenure for a third term be deferred. The move came after differences surfaced during at Tata Sons board meeting on Tuesday, according to a report by Economic Times.
During the meeting, Noel Tata, Chairman of Tata Trusts, reportedly raised concerns about losses in some of the Tata Group's newer businesses. This led to a detailed discussion among board members.
3 February 2026
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Several directors backed Chandrasekaran's reappointment, saying the losses were linked to greenfield projects, new ventures that typically take time to become profitable. They argued that such initial losses are normal during the early stages of expansion.
Point to note: Last year, the board had approved a third executive term for Chandrasekaran until 2027. His current term ends in February 2027, when he turns 65.
However, extending his tenure requires a special resolution and an exception to Tata Sons' retirement policy, which generally limits non-executive leadership roles beyond 65.
During the meeting, Noel Tata laid out four broad conditions for supporting the extension. These include keeping Tata Sons unlisted in line with RBI guidelines for upper-layer NBFCs, maintaining low or no debt, keeping capital expenditure under control, and managing losses from acquisitions such as Air India and BigBasket, the report added.
Anita George, who heads the board's reappointment committee, reportedly supported the extension, noting that losses in new projects are expected and factored into long-term planning.
After discussions, some board members suggested putting the matter to a vote. However, Chandrasekaran recommended deferring the decision, saying that institutions like the Tata Group function best when Tata Sons and Tata Trusts remain aligned on key strategic matters.
