Summary:
Tata Group’s listed market capitalisation has grown about 3.3 times under N Chandrasekaran, but most of the wealth creation came during his first term. The group’s market cap nearly tripled between 2017 and 2022, while growth slowed sharply during his second term. Despite weaker market-cap growth, Tata Group revenue and profits have continued to expand significantly, supported by investments in new businesses. The next chairman will face the challenge of improving returns from these investments while maintaining the group’s growth momentum.
N Chandrasekaran’s nearly decade-long tenure at Tata Sons created substantial shareholder wealth, but the headline numbers hide a sharp difference between his first and second terms. Since he took charge in February 2017, the combined market capitalisation of listed Tata Group companies has grown around 3.3 times to nearly ₹27 lakh crore, from roughly ₹8-9 lakh crore. However, almost all of that acceleration came during his first five-year term.
Chandrasekaran will complete his second term on February 20, 2027, but has decided not to seek reappointment, putting the performance of both phases of his leadership under closer scrutiny.
First Term: Tata Group Valuation Nearly Tripled
The first tenure from 2017 to 2022 was characterised by strong wealth creation across the group's listed businesses. Between March 2017 and March 2022, their combined market capitalisation surged nearly threefold to ₹23.2 lakh crore. The increase was roughly twice the pace of the Sensex during the same period.
Across the full first five-year period, Tata Group market capitalisation increased about 176%, while 15 of its 23 listed companies more than doubled in value. TCS remained the biggest contributor, while Titan, Tata Steel, Tata Consumer Products and several other businesses strengthened materially.
The period also included Tata Motors' domestic turnaround, record profitability at Tata Steel and the group's push into digital businesses, culminating in Tata Neu towards the end of the first term.
Second Term: Market Cap Growth Slows to Just 4%
The second tenure presents a very different picture. From March 2022 to March 2026, the market value of Tata's listed businesses increased only around 4% to roughly ₹24 lakh crore, compared with a 23% rise in the Sensex.
The slowdown coincided with pressure at several major businesses. TCS faced AI-related disruption and recorded its first revenue decline since listing, while Jaguar Land Rover was hit by a cyberattack and weaker demand in key markets. Tata Steel's European operations continued to face losses.
At the same time, Tata Sons committed substantial capital to newer businesses including Air India, Tata Digital, Tata Electronics and battery venture Agratas. Losses from private businesses almost doubled to ₹27,854 crore in FY26, reflecting their investment-heavy growth stage.
Revenue and Profit Growth Remained Strong
The slower listed-market valuation does not mean operating performance stagnated. Tata Group revenue increased from ₹7.89 lakh crore in FY20 to ₹16.24 lakh crore in FY26, reaching 2.1 times FY20 levels. Profit after tax expanded from around ₹32,000 crore to ₹1.71 lakh crore, or roughly 5.4 times FY20 levels.
Listed-company market capitalisation rose from ₹9.31 lakh crore in FY20 to ₹24.39 lakh crore in FY26, after touching ₹27.85 lakh crore in FY25. The subsequent correction, particularly in technology shares, explains part of the difference.
N Chandrashekaran to Exit Tata Sons in February 2027
Why Tata Group Stocks Fell After Chandrasekaran’s Exit
Tata stocks fell on August 12 as investors reacted to succession uncertainty. TCS declined 3.9%, Tata Motors Passenger Vehicles fell 1.3%, Tata Steel slipped 1.1% and Titan lost 0.6%.
The reaction reflects concern over leadership continuity rather than an immediate change in individual-company fundamentals. The larger question is whether the next Tata Sons chairman can preserve the strong operating growth achieved under Chandrasekaran while improving returns from the group's large investments in aviation, semiconductors, batteries, digital businesses and other emerging sectors.
