Tata group stocks fall up to 4% as N Chandrasekaran steps down as chairman

Shares of Tata Group companies experienced a sharp decline, with some dropping up to 4%, following the announcement that N Chandrasekaran, the Chairman of Tata Sons, would be stepping down. The most significant falls were seen in Tata Consultancy Services (TCS), whose shares plummeted over 4% to Rs 2,322. Other affected companies included Tata Motors Passenger Vehicles, Tata Consumer Products, and Tata Power, each seeing a decline of around 2%.

Chandrasekaran's resignation, which came as a surprise, marked the end of a nearly decade-long tenure during which he transformed India's largest business group. He expanded the group's presence across various sectors, including airlines, semiconductors, electronics, batteries, and digital businesses.

The 63-year-old informed the Tata Sons board of his decision, and it is expected that he will continue in his role until the conclusion of his term as chairman in February 2027. His departure has broader implications for the conglomerate, as he also serves as chairman of several other Tata Group entities.

Chandrasekaran's leadership during his time as Tata Sons Chairman was instrumental in driving the group's growth. From FY20 to FY26, the conglomerate's aggregate revenue surged from Rs 7.89 lakh crore to Rs 16.24 lakh crore, while profit after tax more than quintupled, climbing from Rs 32,000 crore to Rs 1.71 lakh crore. During this period, the combined market capitalization of the group's listed companies grew from Rs 9.31 lakh crore to Rs 24.39 lakh crore, even reaching Rs 27.85 lakh crore in FY25.

Chandrasekaran took over as Tata Sons Chairman in 2017, becoming the first non-Tata professional to lead the holding company since Ratan Tata. His unexpected resignation leaves Tata Sons in the process of a leadership transition months before his term ends, at a time when the conglomerate is making significant investments in emerging sectors.