Chandrasekaran’s third term? Tata Trusts are avoiding the superannuation rule for the first time, the report says

Tata Trusts has agreed to a third executive term for Tata Sons Chairman N Chandrasekaran, bypassing the group’s retirement policy for the first time, the Economic Times reported.

Chandrasekaran, who turns 65 in February 2027, would normally be asked to step down under the group’s rules that define executive roles at that age. However, the newspaper said the trusts made an exception to ensure continuity as Tata navigates key strategic initiatives in semiconductors, electric vehicle batteries and Air India’s turnaround.

“For the sake of business continuity, it was felt that executive leadership was necessary to see through critical projects,” the newspaper quoted a person familiar with the discussion as saying.

The resolution, proposed by Noel Tata and Venu Srinivasan, was passed unanimously at the trusts meeting on September 11 and sent to Tata Sons, which is expected to formalize the third term in February 2026.

Tata Trusts, which owns 66% of Tata Sons, did not comment on the matter. Business Today was unable to independently verify the development. The story will be updated if Tata Trusts issues a statement.

The move represents a major departure from internal norms. While executives may remain in non-executive roles until the age of 70, this is the first formal step down from an active leadership position. For example, Noel Tata stepped down from his executive duties when he was 65, but continued in non-executive roles.

The extension comes as the group faces internal divisions over whether Tata Sons should go public. A July decision upholding his special status is said to be under review. Against this backdrop, Chandrasekaran’s presence is seen as a stabilizing factor.

Under Chandrasekaran, the group’s revenues nearly doubled and its profits tripled. FY25 revenue stood at Rs 15.34 lakh crore, with profits at Rs 1.13 lakh crore.

However, a 30% decline in TCS shares reduced the group’s market capitalization by Rs 6.9 lakh crore in the past year.