SUMMARY

Tata Sons chairman N. Chandrasekaran has declined to take a pay increase for FY26 as the Tata Group weighs concerns around capital allocation and the profitability of several new businesses. During discussions at the Nomination and Remuneration Committee meeting held alongside last week’s Tata Sons board meeting, Chandrasekaran is understood to have said that he would forgo a salary hike this year, The Economic Times reported, citing officials familiar with the matter.

The decision comes at a time when the group is balancing strong revenue growth with pressure on profits. Tata Sons did not comment on the development.

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Chandrasekaran’s decision to forgo a pay rise for FY26 follows a year in which his compensation increased, even as the group faced questions over capital deployment, profitability in new ventures and dependence on TCS for a large share of net profit.

In FY25, Tata Sons reported a 24% rise in revenue to ₹5.92 lakh crore, while net profit fell 17% year-on-year to ₹28,898 crore. Tata Consultancy Services accounted for 43% of the group’s net profit in the same year, underlining the continued importance of the IT services company to the wider conglomerate’s earnings profile.

Chandrasekaran drew total remuneration of about ₹155.8 crore in FY25, up 15% from the previous year, making him one of India’s highest-paid business leaders. His package was heavily performance-linked. Around ₹15.1 crore comprised salary and related benefits, while nearly ₹140.7 crore came through profit-linked commission.

The discussions around remuneration have also come against the backdrop of internal scrutiny over investment in emerging businesses.

Tata Trusts chairman Noel Tata had earlier expressed reservations over the scale of capital committed to several new-age and emerging ventures. He has since acknowledged Tata Electronics as a strategic, nation-building business aligned with India’s manufacturing ambitions and is understood to have appreciated the company’s progress and growth trajectory.

Published on: Jun 17, 2026 10:37 AM IST