Tata Trusts Meet – Debate on Listing, Losses, and Leadership

When the boards of Sir Dorabji Tata Trust and Sir Ratan Tata Trust meet on 08-May, the agenda is likely to focus on listing, losses, and leadership. Above all, it will be a litmus test of whether Noel Tata can be the next Tata Moghul?

Listing will be foremost on the agenda

To list, or not to list; has been the debate about Tata Sons. For a long time, the Tatas managed to keep Tata Sons outside the purview of public scrutiny. The ownership structure of the Tatas was based on a holding company (Tata Sons), which was, in turn, majority owned by Tata Charitable Trusts. As per the new RBI rules on NBFCs; significantly large NBFCs have to list, and Tata Sons cannot escape that requirement. While early support for listing came from the Mistry family (for obvious reasons), the support base is widening. Key directors, other than Noel Tata, see listing of Tata Sons as inevitable.

Mounting losses in select businesses

The second big item on the agenda is mounting losses. In FY26, two businesses incubated by Tata Sons; Air India and Tata Digital, racked up losses of ₹29,000 crore. There is a bigger worry. For a long time, TCS was the saving grace for Tata Sons. However, that is changing; with TCS forced to invest heavily in getting AI-ready and valuations dropping sharply in the last one year. Chandra has justified losses on the grounds that big ideas need long term investments; and he is right. Noel’s argument is that; at some point, the group should take a call on whether a business is to be shelved or persisted with. That may end up being the most contentious issue in the upcoming Trust meetings.

Leadership question is still open

After two 5-year terms, the board of Tata Sons has not been able to agree upon giving a third term to N Chandrasekaran. In the last meeting, Chandra made it clear that his third term at the helm of Tata Sons should be a unanimous decision, as is the practice at Tata Sons. Noel Tata wants an assurance from Chandra that Tata Sons will not be listed; an issue where RBI will have the final say. Obviously, Chandra has refused to be drawn into that debate. The second question to Chandra has been about the huge losses in several businesses and the valuation of the group in the last one year. It is unclear if Chandra will get a third term, but it will be a choice between the short term and the long term.

Will Noel emerge as the next Tata Mughal?

Already there are signs of apparent dissent emerging within the Tata group. Mehli Mistry is taking on Noel Tata at a very structural level. The boards of Tata Sons and Tata Trusts appear to be operating less on unanimity and more on dissent. That is very unlike the Tata group of the past. The question is whether Noel Tata will put his foot down and end dissent like Ratan Tata did. He also has to strike the delicate balance with the Mistry family, considering he is closely related to both families. He also needs to end open feuding with a group that holds 18.4% in Tata Sons. Noel Tata has just started off, but his challenges are going to be much more complicated than the scenario 35 years ago.