India's largest conglomerate Tata Sons is set to convene a key board meeting on May 26 where directors are expected to deliberate on a range of strategic and governance issues. According to sources, the possibility of listing Tata Sons may once again come under the spotlight as the group continues to await clarity on its exemption request from the Reserve Bank of India (RBI). The meeting represents a significant opportunity for the group to align its strategic direction across multiple business verticals. As per Moneycontrol reports, the board meeting is expected to take place towards the end of the month, likely next week, with a separate board meeting planned for June 12 to discuss annual accounts.
Tata Sons' board is likely to discuss N Chandrasekaran's third-term reappointment later this month, with uncertainty continuing over his future leadership. In the last meeting of the Tata Sons board, his reappointment for a third term was reportedly blocked by a key board member and Tata Trusts Chairman Noel Tata. He had demanded that Chandrasekaran lay out a roadmap to cut losses faced by several Tata Group ventures, including Air India and Tata Digital, and ensure Tata Sons would remain a privately held firm. According to Moneycontrol reports, Tata Trusts, the majority stakeholder in Tata Sons, is likely to ask the Chairman for a detailed strategic plan for the group's key businesses and new ventures. The board meeting comes at a critical juncture as the conglomerate faces mounting pressure to address financial challenges across its portfolio.
Tata Trusts Chairman Noel Tata will seek a fresh three-year business roadmap from Chandrasekaran, including a detailed strategic plan for the group's key businesses and new ventures. As per Moneycontrol reports, the move comes amid growing concerns within sections of the Tata Trusts over mounting losses at some of the group's marquee ventures and the pace of capital deployment. The developments also come at a time when the Tata Trusts are facing regulatory scrutiny, with Maharashtra Charity Commissioner Amogh S. Kaloti directing Tata Trusts to defer a scheduled board meeting pending an inquiry into complaints alleging violations of provisions of the Maharashtra Public Trusts Act relating to trustee composition. Chandrasekaran is now expected to present a fresh business plan before the board, as the earlier plan presented last year is considered dated amid changing market conditions, rising capital commitments and evolving business realities across sectors such as aviation, digital commerce and electronics manufacturing.
The meeting comes at a time when Tata Sons faces significant financial challenges across multiple ventures. Air India reported a net loss of about ₹10,859 crore in FY25, according to Tata Sons' annual report, with losses projected to widen significantly to nearly ₹28,000 crore for FY26. The expected rise is largely linked to aircraft upgrade expenses, integration-related costs and the airline's ongoing restructuring exercise. Other relatively new Tata ventures including Tata Digital, Tata Electronics and Tata Projects reported losses of ₹4,610 crore, ₹70 crore and ₹697 crore, respectively. Among them, Tata Digital has continued to consume large amounts of capital as the group aggressively expands its presence in online retail and digital services through platforms such as Tata Neu and BigBasket. As per Moneycontrol reports, Tata Digital alone has seen significant cash burn over the past few years as the group pushes aggressively into e-commerce and digital commerce through platforms such as Tata Neu and BigBasket. The pressure is not confined to aviation, with Tata Sons' other newer ventures, such as Tata Digital, Tata Electronics, Tata Teleservices and Tata Projects, together reported losses exceeding ₹25,000 crore in FY25.
While conversations around a public listing are expected to continue, sources suggest Noel Tata is in favour of pursuing an RBI exemption rather than moving ahead with a Tata Sons listing at this stage. The Shapoorji Pallonji Group continues to support the idea of a Tata Sons listing, as it sees the move as a potential avenue for unlocking value. The listing issue has remained under focus after the Reserve Bank of India classified Tata Sons as an upper-layer NBFC under scale-based regulations, which ordinarily requires mandatory listing within a stipulated timeline. In September 2022, the RBI classified Tata Sons as an upper-layer Non-Banking Financial Company (NBFC-UL) under its Scale-Based Regulation (SBR) framework, which meant the company would have to list by September 2025. In 2025, Tata Sons disclosed that it had surrendered its registration as a Core Investment Company (CIC) under RBI regulations and sought exemption from the mandatory IPO requirement. Another key issue relates to the future status of Tata Sons as an unlisted entity, with Tata wanting Chandrasekaran to clearly articulate his views on whether Tata Sons should remain unlisted.
