The board meeting of Tata Sons scheduled for today (May 26) is expected to be one of the most closely watched corporate events of the year. The critical discussions in the meeting are likely to be around leadership continuity, mounting losses in new businesses and the increasingly contentious question of whether Tata Sons should eventually go public.

Reappointment of Chandrasekaran as chairman

At the centre of the meeting is the expected reappointment of N Chandrasekaran as chairman. The proposal was initially expected to be cleared during the group’s February 24 board meeting but was deferred after differences reportedly emerged among influential directors and trustees linked to Tata Trusts.

Financial Express has earlier reported that Chandrasekaran and Noel Tata are expected to hold a private discussion ahead of the formal board proceedings. Noel Tata, who also serves as a director on the Tata Sons board, has become a key figure in the ongoing governance debate following his appointment as chairman of Tata Trusts in October 2024.

Tata Sons remains private or goes public?

The issue of listing Tata Sons has emerged as the sharpest point of friction within the Tata Group. Tata Sons was categorised as an upper-layer non-banking financial company (NBFC) by the Reserve Bank of India in September 2022, which brought with it a regulatory requirement to list by September 2025.

In response, Tata Sons sought deregistration from the RBI after repaying more than Rs 20,000 crore in standalone debt and argued that it no longer required classification as an upper-layer NBFC. However, the RBI’s recent “look-through” clarification has complicated the company’s position.

Under the revised approach, the regulator now considers indirect access to public capital through listed group companies such as Tata Steel, Tata Motors, Tata Power and Tata Consumer Products. That interpretation has strengthened the case for Tata Sons continuing to remain classified as an upper-layer NBFC, increasing the possibility of an eventual public listing.

The listing debate has reportedly exposed divisions within Tata Trusts itself. While Noel Tata is understood to favour retaining Tata Sons’ unlisted status, trustees Venu Srinivasan and Vijay Singh are believed to support a listing.

The leadership issue has also gained urgency because the February board meeting failed to clear Chandrasekaran’s third term despite his current tenure extending until February 2027. Chandrasekaran first took over as chairman in 2017 following the exit of Cyrus Mistry and was reappointed in 2022 for another five-year term.

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Discussion on mounting losses

Apart from governance issues, the board is also expected to discuss mounting financial pressure from the group’s newer businesses, particularly Air India and Tata Digital. Aggregate losses from the group’s newer ventures are estimated at nearly Rs 29,000 crore in FY26.

Tata Digital, which houses platforms such as BigBasket, Tata 1mg, Croma, Tata CLiQ and Tata Neu, has reportedly absorbed more than Rs 24,000 crore in investments and acquisitions without reaching profitability so far.

Chandrasekaran is expected to present updates on these businesses, including the progress of the group’s broader digital commerce strategy and the future roadmap for Tata Sons’ investments. The outcome of Tuesday’s meeting could offer important signals on the balance of power within India’s largest conglomerate and shape the next phase of its governance and expansion strategy.

Why the meeting matters

Questions around leadership continuity, succession planning and growing regulatory scrutiny are becoming harder for Tata Sons to sidestep.

Even if Bombay House does not see any major decisions announced tomorrow, the conversations taking place behind closed doors could play a key role in shaping the next phase of one of India’s largest business conglomerates.