The Tata Trusts, which hold a 66% stake in Tata Sons, convened a board meeting to discuss the appointment of a third representative to the Tata Sons board. This meeting and the subsequent appointment of Noel Tata as a director have been a focal point of discussions.

Background

Tata Sons' Articles of Association allow Tata Trusts to nominate one-third of the directors of Tata Sons. As of October 2024, the board included N Chandrasekaran as chairman, and Venu Srinivasan and Vijay Singh as vice chairmen. Recent changes include Noel Tata succeeding his half-brother, the late Ratan Tata, as Chairman of Tata Trusts in October 2024. Ratan Tata passed away in October 2024.

Noel Tata's Appointment

Noel Tata, half-brother of the late Ratan Tata, was nominated to the Tata Sons board by the Trusts and appointed as an additional director. This appointment received shareholder approval at the company's 107th Annual General Meeting (AGM). Alongside Noel Tata, shareholders also approved the reappointment of Venu Srinivasan and Saurabh Agrawal. Anita Marangoly George was appointed as an independent director.

Noel Tata's professional background includes a graduation from the University of Sussex in the UK and an advanced management program at INSEAD, France. His last executive role was as Managing Director of Tata International Limited, where he grew the company's turnover significantly. Prior to that, he served as the Managing Director of Trent Limited for over a decade, expanding its retail network substantially.

Tata Trusts' Role and Strategy

Tata Trusts owns a significant 66% stake in Tata Sons. The Trusts have previously reaffirmed their stance that Tata Sons should remain a private entity. This position is noteworthy given the Reserve Bank of India's (RBI) regulations that mandate the listing of upper-layer non-banking financial companies (NBFCs) on stock exchanges.

The AGM occurred amidst ongoing discussions with the Shapoorji Pallonji (SP) Group, which owns 18.4% of Tata Sons, regarding a potential exit from the company. As of August 2025, no agreement had been reached.

Financial Performance and Dividends

Tata Sons' financial results for FY25 revealed a revenue of Rs 38,834.58 crore, a decrease from Rs 43,893 crore in FY24, which had included a substantial investment gain. Consequently, the profit after tax decreased from Rs 34,653.98 crore to Rs 26,231.74 crore. Despite the dip in profit, shareholders approved a dividend of Rs 64,900 per ordinary share, a notable increase from Rs 35,000 the previous year. This resulted in a total dividend payout of Rs 2,622.91 crore, with Rs 1,731 crore allocated to Tata Trusts for its philanthropic activities.

Other Developments

The Tata Group is proceeding with the listing of Tata Capital Ltd, with a proposed IPO expected to raise around Rs 17,000 crore. Additionally, with the retirement of Ajay Piramal and Ralf Speth from the board, two new directors are expected to be appointed.