The board of Tata Sons convened on Friday to approve the company's financial results for the fiscal year ending March 31, 2026, and recommended a dividend for equity shareholders. However, for the second consecutive time, the reappointment of chairman N Chandrasekaran was not included on the agenda.
According to a source familiar with the proceedings, the board adhered strictly to the agenda and did not engage in discussions on controversial matters. Tata Sons is reported to have achieved high-teens profit growth in FY26, a development that strengthens Chandrasekaran's position amid scrutiny from Noel Tata, chairman of the principal shareholder Tata Trusts, regarding losses in new ventures such as Tata Digital. The profit growth occurred despite lower dividend income from operating companies, including a reduced payout from Tata Consultancy Services (TCS).
Proceeds from the sale of Tata Capital shares via an initial public offering in September 2025 contributed to bolstering profits. In FY25, Tata Sons recorded a profit of Rs 26,232 crore. Tata Trusts, which holds approximately 65% of Tata Sons, stands to benefit the most from the dividend distribution.
Noel Tata personally owns 4,058 shares in Tata Sons. The dividend is applicable only to equity shareholders, as Tata Sons had previously redeemed its preference shares as part of a broader strategy to retire debt and avoid the Reserve Bank of India's mandatory listing requirements. Noel Tata opposes a public listing of Tata Sons. In FY25, Tata Sons paid a dividend of Rs 64,900 per ordinary share.
The board also approved remuneration for directors and key management personnel, following a recommendation by the nomination and remuneration committee chaired by Harish Manwani.
