- TCS shares fell 4.84% after Tata Sons Chairman N Chandrasekaran decided not to seek reappointment
- Chandrasekaran will step down at the end of his tenure before the August 18 Tata Sons AGM
- TCS Q1FY27 net profit fell 2.7% QoQ to Rs 13,349 crore while revenue grew 2.2% to Rs 72,275 crore
Tata Consultancy Services (TCS) shares fell as much as 4.84% to Rs 2,322 apiece on the BSE on Wednesday after Tata Sons Chairman N Chandrasekaran decided not to offer himself for reappointment when his current tenure ends on February 20, 2027.
Chandrasekaran has communicated his decision to the Tata Sons Board, ahead of the company's August 18 annual general meeting (AGM), saying he has asked the Board to decide on his succession soon to ensure a proper transition.
At 11:00 am, TCS shares were trading 3.47% lower at Rs 2,355.60, while the BSE Sensex was down 0.67% at 77,631.
ALSO READ: N Chandrasekaran Resigns As Tata Sons Chairman Ahead Of AGM
In a statement, Chandrasekaran said he has completed 40 years of professional life at the Tata Group and described leading Tata Sons over the past decade as "a great honour and a profound responsibility".
“I have completed 40 years of professional life at the Tata Group. I am grateful for the immensely satisfying opportunity to contribute to this venerable institution. Leading Tata Sons over the past decade has been a great honour and a profound responsibility,” he said in the statement.
Chandrasekaran said his current tenure as Chairman of Tata Sons ends on February 20, 2027. He said the Sir Dorabji Tata Trust and Sir Ratan Tata Trust had unanimously resolved and recommended extending his next term by five years. The proposal was subsequently recorded and recommended by the Tata Sons Nomination and Remuneration Committee and the Board.
According to Chandrasekaran, the resolution was tabled at the Tata Sons Board meeting on February 24, 2026, but was not carried through after one Board member did not support it.
“However, the proposal was not carried through because one of the Board Members did not support it, and in the absence of unanimous support, I chose to defer the decision,” he said.
Chandrasekaran said six months have passed since that Board meeting without a resolution being reached.
“It has been 6 months since that Board meeting, and no resolution has been reached till date,” he said.
He added that Tata Sons is a large institution with several strategic projects at critical stages of execution, making leadership clarity important for the Group's stakeholders.
“Tata Sons is a very large institution and there are many strategic projects that are under critical stages of execution. It is not only necessary to have a leader in place to lead the Group beyond Feb 2027, but also clarity on leadership is important for employees, investors, partners and other stakeholders,” Chandrasekaran said.
ALSO READ: Tata Group Stocks Lose Rs 39,000 Crore After N Chandrasekaran Exit
“Under these circumstances, earlier today, I have communicated to the Tata Sons Board, that I have decided not to offer myself for reappointment when my term ends on Feb 20, 2027,” he said.
Chandrasekaran added that he has asked the Board to decide on his successor soon.
“I have asked the Board to decide on the succession soon to ensure a proper transition. I am grateful for the support of all stakeholders,” he said.
Natarajan Chandrasekaran, popularly known as Chandra, has served as Chairman of Tata Sons and the Tata Group since January 2017. He joined TCS as an intern in 1987 and went on to become its CEO in 2009 before taking charge of Tata Sons.
TCS Q1 Show
TCS reported a mixed performance for the April-June quarter of financial year 2027 (Q1FY27), with net profit and operating margins declining sequentially despite modest revenue growth.
The IT major's consolidated net profit fell 2.7% quarter-on-quarter (QoQ) to Rs 13,349 crore, compared with Rs 13,718 crore in the previous quarter. Revenue from operations increased 2.2% to Rs 72,275 crore, from Rs 70,698 crore.
EBIT declined 3.1% QoQ to Rs 17,317 crore, from Rs 17,870 crore, while EBIT margin narrowed to 24% from 25.3%.
TCS declared a dividend of Rs 12 per share, below the market estimate of Rs 19. The record date was July 15, 2026, while the payout was scheduled for July 31, 2026.
Employee attrition stood at 13.6% during the quarter, above the Bloomberg consensus estimate of 11.5%. Total headcount stood at 593,798 at the end of the quarter.
TCS reported 0.4% QoQ constant-currency revenue growth, in line with market expectations. Total contract value (TCV) stood at $9.5 billion, including an $800 million deal with SKF.
Among key verticals, BFSI revenue grew 1.6% sequentially, while India revenue increased 7.6%. Consumer business declined 4%, life sciences and healthcare fell 1%, manufacturing slipped 0.5%, and North America revenue declined 0.4%.
Commenting on the performance, K Krithivasan, CEO and Managing Director of TCS, said the first quarter of FY27 reflected continued growth momentum. He highlighted the $9.5 billion order book, the AI-led transformation deal with SKF, continued client additions and the scaling of TCS' AI business to an annualised revenue run rate of $2.6 billion.
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