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Tata Sons: Chandra reappointed as Chairman, but governance battle with Tata Trusts Escalates

ICICIdirect Research 18 Sep 2026 DISCLAIMER

Tata Sons board has approved N. Chandrasekaran’s reappointment for another five years, reversing his August decision to step down after February 2027. The resolution reportedly passed 4–1, with Noel Tata voting against.
The bigger issue is the opposition from Tata Trusts, which owns ~66% of Tata Sons and is the largest shareholder.

The disagreement appears intertwined with two strategic questions:

  • Whether Chandra should continue, and
  • Whether Tata Sons should move towards a public listing following RBI's rejection of its request to surrender its regulatory registration.

The Tata Sons board has decided to initiate steps towards compliance with RBI guidelines, including the possibility of listing, whereas Tata Trusts continues to oppose listing and has argued for exploring alternatives.
Developments in this case need closer and continuous monitoring and has implications for markets. To give you a perspective, Tata group companies holds ~8% weight in headline Nifty 50 while their combine MCap is close to ₹ 20 lakh crore. Chandra's tenure has seen significant investments in Air India, electronics manufacturing, EVs, batteries, semiconductors, and other new-age businesses. The next five years will therefore be judged less by portfolio creation and more by RoIC, cash-flow generation and monetization of these investments. This is particularly relevant given earlier reported concerns around losses in newer businesses and the pace of capital deployment.
For the listed group companies, this development is sentiment/strategic-continuity positive rather than an immediate earnings catalyst.
We are positive and have BUY ratings on most of the Tata Group companies namely: Tata Steel (BUY; Target: ₹ 240), Tata Motors CV (BUY; Target: ₹ 550), Tata Consumer Products (BUY; Target: ₹ 1,420), Trent (BUY; Target: ₹ 3,599), Titan (BUY; Target: ₹ 5,830) while have HOLD rating on its most valuable asset i.e. TCS (HOLD; Target: ₹ 2,200)
 

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