Tata Sons board meeting to review loss-making unlisted businesses, sources say

Tata Sons directors will meet on Tuesday, with the agenda expected to include reviews of group firms that are losing money. People familiar with the plan said several units may present business updates and outline next steps. The meeting comes as internal strains within the Tata group have drawn attention to performance and oversight at the holding company.

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Sources said the board session was not expected to take up any decision on continuing N Chandrasekaran as Tata Sons chairman. The same sources described discussion on reappointment as unlikely at this meeting. Recent weeks have seen reports of disagreements at senior levels, including moves involving certain members and delays linked to leadership continuity.

Tata Sons board meeting and loss-making companies

According to a source, presentations are likely from individual companies, with focus on those in the red. The brief is expected to cover current conditions and plans for improvement. The review follows reports that the group’s unlisted businesses recorded a combined loss of Rs 10,905 crore in FY25.

Reports have also indicated that the combined loss could rise to Rs 29,000 crore. The discussion is taking place within a structure where Tata Trusts owns about two-thirds of Tata Sons. Tata Sons acts as the group’s holding company, which connects governance issues with the wider performance debate.

Tata Sons losses, Tata Trusts and Noel Tata

Chandrasekaran and Tata Trusts chairman Noel Tata, a nominee director on the Tata Sons board, were understood to have met over the weekend. Sources said the conversation covered the performance of businesses facing losses. Reports have said Noel Tata has concerns about losses tied to newer ventures started under Chandrasekaran.

Those ventures, as cited in reports, include Tata Digital and electronics businesses. Reports have also pointed to concerns around Air India, which remains under financial pressure. Air India was bought from the government a few years ago, and its progress has been watched closely inside the group.

Tata Sons IPO, RBI NBFC listing rules and Neville Tata

Reports have said Noel Tata is not keen on taking Tata Sons public through an IPO. Tata Sons is a core investment company and has been classified by the RBI among the top-15 non-bank finance companies, or NBFCs. This category faces a mandate to list, bringing the IPO question into sharper focus.

Neville Tata, the son of Noel Tata, has already been added to some trusts or foundations linked to the group. Separately, e-mails sent to a Tata Trust representative did not receive a reply until the story was filed. These details have featured in recent reporting around governance and succession.

Tata Sons listing and InGovern proxy advisory firm view

Before the board meeting, proxy advisory firm InGovern said a listing for Tata Sons was necessary. "A holding company of this large scale and systemic relevance should not remain outside a stronger transparency and governance framework of a listed company,\" the report said. \"Where control is exercised through a complex trust-based holding arrangement, the case for listing becomes stronger, not weaker, because governance should not depend on private consensus alone,\" it added.

The Tuesday meeting is expected to centre on performance reviews and plans from loss-making businesses, according to sources. While leadership decisions are not expected, the wider debate on losses, oversight, and listing pressure remains active. Any next steps are likely to depend on board feedback and updates shared by individual companies.

With inputs from PTI