Tata Sons has approved a five-year extension for chairman N Chandrasekaran, putting his leadership back at the centre of the group’s plans only weeks after he said he would not seek another term.

Chandrasekaran’s current tenure is due to end on February 20, 2027. He had announced in August that he would not seek a third term, making Thursday’s board decision a significant turn in the leadership discussions at the Tata Group holding company.

The board meeting lasted about three hours. Tata Trusts chairman Noel Tata opposed the resolution on Chandrasekaran’s reappointment, while the other board members backed the proposal.

Chandrasekaran has led Tata Sons since February 2017. He was unanimously reappointed for a second five-year term in 2022, taking his current tenure through February 2027. A proposal for another term had previously been under discussion, but did not move forward earlier this year. He subsequently announced in August that he would not seek another tenure.

The decision comes at an important time for Tata Sons, which is also dealing with the question of a possible stock-market listing.

The Reserve Bank of India classified Tata Sons as an upper-layer non-banking financial company in September 2022. Tata Sons later repaid debt and sought to surrender its Core Investment Company registration as it looked to remain privately held. The RBI rejected that application in September 2026.

The listing issue has also highlighted differing positions among Tata Sons’ major shareholders. Tata Trusts, which owns about 66 per cent of the holding company, had opposed an initial public offering, while the Shapoorji Pallonji Group, with around 18.4 per cent, had pushed for a listing to improve liquidity and unlock value.

Against that backdrop, the board’s decision on Chandrasekaran provides continuity at the top of Tata Sons at a time when the group is navigating both leadership and ownership-related questions.

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