Mumbai: Tata Sons chairman N Chandrasekaran has decided not to seek a second term after his current tenure ends on February 20, 2027, marking a significant leadership transition at the holding company of the Tata Group.

Chandrasekaran said the Sir Dorabji Tata Trust and Sir Ratan Tata Trust had recommended extending his tenure by five years, and the proposal was placed before the Tata Sons board. However, after one board member did not support the move and unanimous approval was not achieved, he chose to defer the decision.

In a statement, Chandrasekaran said no resolution had been reached over the past six months and stressed that clarity on leadership was essential as Tata Sons oversees several strategic projects. He requested the board to begin the process of selecting his successor to ensure a smooth transition.

Chandrasekaran, who joined the Tata Group in 1987, became CEO of Tata Consultancy Services in 2009 before taking charge as Tata Sons chairman in 2017. Under his leadership, the group expanded its presence across sectors, including technology, automobiles and aviation.

Tata Sons, which controls over 30 companies including TCS, Tata Motors and Air India, is majority-owned by Tata Trusts. The development comes amid reports of differences between Tata Sons and Tata Trusts over his reappointment.

Tata Group shares witnessed pressure following the announcement as investors reacted to the leadership change.