Tata Trusts have proposed a fresh strategy to keep Tata Sons privately held. The plan suggests merging Tata Electronics Systems Solutions and Tata Consulting Engineers with Tata Sons. This merger would help Tata Sons shed its classification as a Non Banking Financial Company or Core Investment Company. By doing so, Tata Sons can avoid mandatory listing requirements and continue as an unlisted entity.
Tata Trusts hold a 66% stake in Tata Sons. The proposal requires a no objection certificate from the Reserve Bank of India. Historically, Tata Sons operated with its own businesses and revenues for nearly 80 of its 100 years. It funded ventures like Tata Consultancy Services which was part of Tata Sons until 2004.
In FY26, Tata Sons reported operating revenues of ₹1,05,043 crore. Income from financial assets stood at ₹40,072 crore. Operating revenues accounted for 64.3% of total income. Net assets were valued at ₹2,00,158 crore with investments in group firms at ₹1,77,120 crore which is less than 90%. This means Tata Sons would not meet the principal business criteria for NBFC or CIC classification.
The move is seen as a way to preserve legacy and avoid pressure of an initial public offering. The proposal was initiated by Noel Tata, Chairman of Tata Trusts, reinforcing the Trusts’ influence on the future of Tata Sons.
