Tata Sons Shareholders Approve Noel Tata's Appointment as Director
Noel Tata has been nominated to the Board by the trusts and appointed as an additional director last year. He became the chairman of the Tata Trusts in October 2024. The anticipated Tata Capital IPO, which is anticipated to be completed by September, will be discussed with shareholders by Executive Chairman N. Chandrasekaran.
A payout of Rs 2,622.91 crore would result from the Board's proposed dividend of Rs 64,900 per ordinary share, up from Rs 35,000 the previous year. About Rs 1,731 crore would be given to Tata Trusts, which own 66 percent of Tata Sons, for charitable endeavors.
The AGM coincides with strategic upheaval at Tata Trusts under Noel's direction, including equivocal negotiations for a possible exit with the Shapoorji Pallonji Group, which owns 18.4 percent of Tata Sons. Additionally, the trusts have instructed the business to maintain its privacy. Ralf Speth and Ajay Piramal will step down from the Board, and two new members will be added later.
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Tata Sons reported revenue of Rs 38,834.58 crore for FY25, compared to Rs 43,893 crore for FY24, which was increased by an investment gain of Rs 9,375.66 crore. After taxes, the profit dropped from Rs 34,653.98 crore to Rs 26,231.74 crore. The business had Rs 7,117.43 crore in net cash at the end of March after paying off all of its debts.
With a debt-free balance sheet, Tata Sons has applied for permission from the Reserve Bank of India to remain private and declassify as an NBFC (upper layer). The application is still waiting, and the RBI has set a September listing deadline for these NBFCs.
According to chairman Noel Tata, Trent Ltd.'s supermarket company, Star, has the potential to surpass the company's flagship fashion brands, Zudio and Westside, which are owned by the Tata Group.
Trent's focus on Star follows the appointment of 32-year-old Neville Tata, the son of Noel Tata, as the supermarket company's business chief less than a year ago.
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Over the last six years, Star has lost more than Rs.1,000 crore. In 2024–2025, Zudio's revenue surpassed Rs.8,300 crore, while Westside's revenue was Rs.6,210 crore.
However, Star's 15.2 percent contribution to Trent's consolidated revenue in FY25 highlights the company's increasing importance in its total portfolio. During the year, Star's revenue of Rs.2,743 crore increased by over 25 percent compared to FY24.
This fiscal year, Trent intends to spend Rs.2,000 crore in Trent Hypermarket Pvt. Ltd., the company that operates Star, according to an analyst report by HDFC Securities Ltd. According to a memo dated June 27, that would be almost three times the Rs.754 crore Trent has put in its food business in over 20 years.