N Chandrasekaran will step down as Tata Sons chairman after completing his current term on February 20, 2027.
His decision comes as the Tata Group’s next leader faces a major challenge: three of the group’s newer businesses reported combined losses of ₹28,823 crore in FY26.
Air India, Tata Electronics and Tata Digital are among the major businesses that the incoming chairman will have to navigate as the conglomerate prepares for a leadership transition.
Chandrasekaran To Step Down
Chandrasekaran informed the Tata Sons board on August 12 that he would not seek another term after his current tenure ends. He will continue in the position until February 20, 2027.
The development ends months of uncertainty around his continuation at the holding company of the Tata Group. The next chairman will inherit a portfolio that includes several large businesses undergoing significant expansion and investment.
Among the immediate financial challenges are three businesses that have accumulated substantial losses while Tata has pursued expansion in aviation, electronics and digital commerce.
Air India Drives Losses
Air India is the biggest contributor to the ₹28,823 crore combined loss.
The airline reported a ₹22,238 crore loss in FY26, accounting for more than three-fourths of the combined losses of Air India, Tata Digital and Tata Electronics. The figure was more than double Air India’s ₹10,859 crore loss in FY25.
The airline has been undergoing a major transformation since the Tata Group took control of Air India. The group has been investing in fleet renewal, expansion and operational improvements, but the scale of the losses remains a significant challenge for the next Tata Sons chairman.
Air India’s financial performance will therefore remain one of the most important issues for the group’s new leadership.
Tata Electronics Needs Investment
Tata Electronics is another major long-term business being built by the group, particularly in electronics and semiconductor manufacturing.
Its revenue reached ₹1,31,082 crore in FY26, nearly double the ₹66,601 crore recorded in FY25. Despite this sharp increase in revenue, the company remained loss-making.
The Tata Group has been investing heavily in semiconductor and electronics manufacturing, including its semiconductor fabrication plans. These businesses require substantial investment before they can generate meaningful returns, making continued funding and execution important priorities for the incoming chairman.
Tata Digital Faces Competition
Tata Digital is the third major cash-consuming business highlighted in the Times of India report.
The company reported a ₹4,974 crore loss in FY26, compared with ₹4,610 crore in FY25. Tata Digital operates businesses including BigBasket, which has faced growing competition in India’s quick-commerce market.
BigBasket entered the quick-commerce race after Tata Digital acquired the company in 2021. However, competitors including Blinkit, Swiggy Instamart and Zepto have established strong positions in the rapidly expanding segment.
According to the TOI report, BigBasket’s share of the quick-commerce market remains considerably smaller than that of market leader Blinkit. The competitive pressure adds to the challenges facing Tata Digital as it attempts to build a profitable digital consumer business.
Tough Road For Successor
The three businesses together lost ₹28,823 crore in FY26, with Air India accounting for the largest portion.
For the next Tata Sons chairman, the challenge will be managing these businesses while they remain in different stages of expansion. Air India needs to improve its financial performance, Tata Electronics is pursuing capital-intensive semiconductor and electronics manufacturing, and Tata Digital faces intense competition in consumer internet and quick commerce.
Chandrasekaran will remain in office until February 2027, giving Tata Sons time to identify and prepare his successor. But the financial performance of these three businesses means the leadership transition will take place against the backdrop of some of the group’s most significant investment challenges.
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