Trustees of Tata Trusts will meet on May 8 to deliberate on a range of sensitive issues, including mounting losses at Tata Sons in FY26, the question of Chairman Natarajan Chandrasekaran’s potential third term, and options to provide an exit to the Shapoorji Pallonji Group, which holds an 18.4% stake in the holding company.
The meeting, to be chaired by Noel Tata, comes amid internal differences among trustees over proposals such as lifetime tenure and whether individuals outside the Zoroastrian community can be appointed to smaller trusts. The induction of Neville Tata to the board of Sir Ratan Tata Trust is not on the agenda, according to a person familiar with the matter. Neville already serves on the board of Sir Dorabji Tata Trust. Together, the two trusts hold a 66% stake in Tata Sons, and their nominees — Noel Tata and Venu Srinivasan — wield veto power over key board decisions.
Trustees are also divided on whether to pursue a listing of Tata Sons. Following a directive from the Reserve Bank of India requiring upper-layer NBFCs to list, Tata Sons repaid its debt and sought deregistration from that category; a decision from the regulator is awaited. Noel Tata is opposed to a listing as it could dilute the trusts’ veto powers. Both the trusts and the Tata Sons board have previously resolved to keep the company private and have asked Chandrasekaran to explore exit options for the SP Group.
“Resolutions were passed by the trusts as well as the Tata Sons board to keep the company private. Hence, it is the fiduciary duty of the trustees to adhere to that decision,” said a source close to the development. The source added that while Venu Srinivasan and Vijay Singh had earlier supported remaining private, their stance shifted later. The trusts, originally endowed with Tata Sons shares for philanthropic purposes, are expected to act in line with the founders’ intent. “Chandra has to follow the directions of both the trusts and the board,” the source said.
Strained Balance Sheets
The meeting comes about a month ahead of a Tata Sons board meeting in June, where management is expected to outline a long-term strategy, including plans to stem losses at Air India and Tata Digital, which together posted losses of about ₹29,000 crore in FY26. It will also review options for the SP Group, which is exploring a partial stake sale to meet debt obligations. A listing would have provided an easier route to unlock value.
An email to Tata Trusts seeking comment did not elicit a response.
Leadership at a Crossroads
The issue of Chandrasekaran’s third term is also likely to come up informally. It was dropped from the Tata Sons board agenda in February after Noel Tata sought a vote. Chandrasekaran’s current term ends in February next year; if not extended, a search committee will need to be constituted to identify a successor, the source said.
Tata Sons is the principal investment holding company of the Tata group, with controlling stakes across software, steel, automobiles and aviation. The trusts — primarily Sir Dorabji Tata Trust and Sir Ratan Tata Trust — act as the group’s philanthropic arms, funding charitable activities through dividend income from Tata Sons.
The SP Group’s shareholding in Tata Sons has long been a source of friction, leading to high-profile legal disputes and remaining central to ongoing discussions on ownership and governance.