Tata group stocks fall up to 4% as N Chandrasekaran steps down as chairman
Shares of Tata Group companies came under pressure and fell by as much as 4%, after Tata Sons Chairman N Chandrasekaran resigned ahead of the conglomerate’s annual general meeting (AGM) scheduled for August 18. The decline was led by Tata Consultancy Services (TCS), the group’s most valuable listed company.Tata Group stocks ended mostly lower on the BSE, with Tata Consultancy Services (TCS) leading the decline after falling 3.71 per cent. Tata Consumer Products dropped 2.44 per cent, Tata Elxsi lost 2.23 per cent, Tata Motors Passenger Vehicles declined 1.92 per cent and Tata Steel slipped 1.57 per cent.Among the other group companies, Rallis India fell 0.95 per cent, followed by Trent at 0.86 per cent. Tata Power shed 0.53 per cent, Indian Hotels Company declined 0.52 per cent, Tata Communications eased 0.37 per cent and Titan ended 0.18 per cent lower.The fall in share prices wiped out a combined Rs 45,615.67 crore from the market capitalisation of these companies. Tata Consultancy Services accounted for the bulk of the decline, with its market value shrinking by Rs 32,743.69 crore.The broader market also closed in negative territory. The BSE Sensex, comprising 30 shares, settled 187.90 points, or 0.24 per cent, lower at 77,966.35, while the NSE Nifty50 ended the session down 35.75 points, or 0.15 per cent, at 24,435.95.Chandrasekaran’s resignation marks an unexpected end to a tenure of nearly 10 years during which he reshaped India’s largest business group, expanding its presence across sectors including airlines, semiconductors, electronics, batteries and digital businesses.
N Chandrasekaran’s journey at Tata Group: Transformation & Challenges
N Chandrasekaran steps down as Tata Sons Chairman
People familiar with the matter told ET that the 63-year-old informed the Tata Sons board of his decision. He is expected to remain in office until the completion of his term as chairman in February 2027.His departure has wider implications for the conglomerate, as he also serves as chairman of Tata Consultancy Services, Tata Motors, Tata Consumer Products and several other Tata Group companies. Since assuming charge of Tata Sons in 2017, he has played a pivotal role in overseeing the group’s businesses.The decision comes amid uncertainty surrounding the August 18 AGM and the position Tata Trusts, which holds about 66% of Tata Sons, will take during the meeting. Tata Trusts Chairman Noel Tata is understood to be opposed to Chandrasekaran continuing in the role.The Tata Group witnessed substantial expansion during Chandrasekaran’s leadership. According to figures released by the conglomerate, aggregate revenue increased from Rs 7.89 lakh crore in FY20 to Rs 16.24 lakh crore in FY26.During the same period, profit after tax grew more than fivefold, rising from Rs 32,000 crore to Rs 1.71 lakh crore.The combined market capitalisation of the group’s listed companies climbed from Rs 9.31 lakh crore in FY20 to Rs 24.39 lakh crore in FY26, although it had reached Rs 27.85 lakh crore in FY25.After successfully leading Tata Consultancy Services, Chandrasekaran assumed charge of Tata Sons in 2017, becoming the first professional executive from outside the Tata family to head the holding company after Ratan Tata.Chandrasekaran’s resignation leaves Tata Sons preparing for a leadership transition several months before the expiry of his current term, at a time when the conglomerate is undertaking some of its biggest investments in emerging businesses.
