Author: Staff Writer

The Centre is preparing to step in to address escalating tensions within the Tata Group, with senior government ministers scheduled to meet key executives from the conglomerate, The Economic Times reported on Monday. The intervention comes as internal disagreements at Tata Trusts—the principal shareholder of Tata Sons—threaten to affect the operations of India’s most valuable business house.

The discussions in New Delhi this week are expected to involve Noel Tata, Chairman of Tata Trusts; Venu Srinivasan, Vice-Chairman of Tata Trusts; N Chandrasekaran, Chairman of Tata Sons; and Darius Khambata, Trustee of Tata Trusts. According to ET, the meetings aim to evaluate recent developments that have caused widespread concern among stakeholders.

Central to the discussions are two pressing issues: resolving divisions among Tata Trusts’ trustees to avoid disruption at Tata Sons, and charting the way forward on the public listing of Tata Sons, a regulatory requirement under RBI norms issued three years ago.

The tensions reportedly trace back to a contentious Tata Trusts meeting on September 11, which exposed deep disagreements among trustees roughly a year after the passing of veteran industrialist Ratan Tata. Conflicts appear to revolve around control of Tata Sons, particularly concerning the appointment of nominee directors and the sharing of information on board proceedings.

The situation escalated after Vijay Singh, former Defence Secretary and Tata Sons nominee director, was removed—a decision opposed by Noel Tata and Venu Srinivasan.

Concurrently, a proposal to induct trustee Mehli Mistry to the Tata Sons board, supported by Pramit Jhaveri, Darius Khambata, and Jehangir Jehangir, intensified the rift, ET noted.

Reports suggest that an internal email from a trustee, seen as a veiled warning to remove Srinivasan in a manner similar to Singh, has heightened fears of a potential consolidation of control that could disrupt Tata Sons’ governance.

The upcoming meetings are intended to secure smoother operations within Tata Trusts and mitigate any ripple effects across the Tata Group. Officials said the unrest has gained attention across various group entities, particularly as board restructuring and trustee appointments remain uncertain.

The discussions also come at a crucial juncture for Tata Sons’ regulatory obligations. September 30 marked three years since the RBI designated it as an “upper-layer” NBFC, requiring mandatory public listing. Tata Sons had sought deregistration from the RBI in March 2024, requesting exemption from both listing and associated regulations, but a response is still pending, ET reported.

Meanwhile, the Shapoorji Pallonji Group, holding an 18.37% stake in Tata Sons and grappling with high debt, continues to advocate for listing to unlock liquidity. Government sources told ET that authorities are closely monitoring trustee demands for access to board agendas, prior approvals for key decisions, and challenges to independent director appointments, which have contributed to governance concerns.

The unrest has reportedly been growing over several months, with divisions becoming sharper as terms of key trustees near renewal, amid disputes over conflicts of interest and financial transparency, according to The Economic Times.

Also Read: Supreme Court Defers Vodafone Idea’s AGR Plea; Stock Falls Around 4%

As the July-September quarter looms, India’s IT services firms are bracing for another muted financial performance, with growth expectations pinned down by weak demand, client budget constraints, and renewed uncertainty following changes to U.S. H-1B visa rules.

Once a strong period for the industry, Q2 is now expected to deliver only modest gains, if any, amid a cautious global environment.

Across the board, analysts foresee single-digit growth or flat sequential expansion in constant currency terms for large-cap Indian IT players.

The continuing pressure is attributed to macroeconomic headwinds coming out of developed economies, especially the United States.

Client organisations are holding back on discretionary spending and large-scale transformation projects, opting instead to prioritise cost optimization and bandwidth reduction. Many firms that had leveraged upticks earlier in the year say the momentum has dissipated. The sector’s reliance on the U.S. market only compounds the challenge. 

The newly imposed $100,000 one-time fee for H-1B visa applications has triggered renewed concerns. Indian IT companies, major deployers of H-1B professionals in the U.S., view the change as a potential disruptor to existing staffing and project continuity.

Industry bodies have warned that the policy could introduce significant operating cost pressures, especially for nearshore models that depend on moving talent across geographies. Though the U.S. has clarified that the fee applies only to new applications and not renewals or existing holdings, the shift raises questions about recruitment plans, visa dependency, and localization strategies. 

One of the sector’s largest names, TCS, is scheduled to kick off the earnings season under this cloud of uncertainty. The company is expected to report a slowdown in revenue growth in constant currency terms, as client hesitation and visa-related cost burdens weigh on margins and operating models. Firms are particularly under scrutiny for their staffing plans, offshore vs onshore balance, and ability to localize talent in the face of visa constraints. 

Margins may see some resilience through exchange rate tailwinds as the rupee depreciates, but that cushion is expected to be offset by wage inflation, pricing pressures, and rising cost of talent deployment. Most firms are believed to be operating at relatively high utilization levels, limiting further room for productivity gains through existing capacity.

Analysts expect that the near-term focus will remain on deal wins in infrastructure modernisation, cloud migration, and AI adoption, but conversion and execution timelines may stretch as clients remain cautious. 

Mid-tier and niche IT firms might outperform their larger peers slightly, as they are often more agile and able to pivot toward smaller, more modular engagements. Some of them have already been gaining traction in automation, AI, and digital engineering mandates. 

Looking ahead, meaningful recovery for the sector is seen by many as a possibility only in the next technology cycle, potentially 12 to 18 months out. For now, expectations are that the industry will tread carefully, lean on cost controls, and await clearer visibility in client pipelines and macro stability. The H-1B policy change, while disruptive, is also pushing companies to rework their global staffing models — an adjustment that could reshape future operating norms, even if it deepens the jitteriness of the current quarter. The coming weeks will be critical to see how firms manage to navigate these layered headwinds and whether they can deliver performance with limited tailwinds.

Vedanta Ltd reported a string of operational highs in its second quarter for FY 2026, with key divisions such as aluminum, alumina, zinc and pig iron registering record outputs, even as other segments grappled with headwinds. The company’s performance underscores its push to scale capacity and improve productivity across its diversified metals and mining portfolio.

In the quarter ended September 30, 2025, Vedanta posted its highest ever aluminium output of 617 kt, while alumina production at its Lanjigarh refinery climbed to 653 kt — a sharp 31 percent year-on-year growth. These figures mark record quarterly and half-yearly highs for both aluminium and alumina, and reflect strong operational momentum in the upstream chain.

Alongside these gains, Vedanta’s zinc business also delivered standout results. Zinc India recorded its best ever mined metal production of 258 kt — up about 1 percent year-on-year — representing its most productive second quarter and first half. Zinc International fared even better, scaling mined metal output by nearly 38 percent to 60 kt, aided by higher milled tonnages and stronger lead grades.

In the iron and steel segment, the company achieved its highest quarterly pig iron production of 238 kt, an increase of 26 percent year-on-year, driven by successful debottlenecking efforts in its blast furnace operations. Billet production too rose steeply, climbing 43 percent to 232 kt.

However, not every division sustained the growth trajectory. Vedanta’s iron ore production fell by 19 percent to 1.1 million tonnes, a decline attributed to heavier rainfall and subdued demand in the construction sector. Oil and gas posted a 15 percent year-on-year dip, with average daily gross operated production falling to 89.3 kboepd, partly on account of softer output from the Rajasthan block. Steel finished product output also slipped about 8 percent, though its billet segment showed strength.

On the energy front, Vedanta reported its power sales fell 2 percent year-on-year to 4,331 million units, while in the metals basket, copper production saw a modest 3 percent decline, affected by raw material sourcing issues. Lead and silver production also lagged due to disruptions in pyro-plant availability and weaker feed grades.

Vedanta’s Q2 results highlight a deliberate strategy to lean into its most scalable, higher-margin segments even as its more volatile verticals face pressures. While the aluminium and zinc divisions are benefiting from robust global prices and improved efficiencies, sustaining output gains across iron ore, oil & gas and downstream metals will be the true test. The company also continues to pursue capacity expansions — notably in aluminum — backed by plans to invest heavily to scale to 3.1 million tonne capacity by FY28.

Market reaction to the production release was broadly positive. The strength in core metals helped buoy investor sentiment despite challenges in complementary areas. For Vedanta, the current performance underscores both the promise and the volatility of a multi-asset natural resources conglomerate: the ability to post fresh records in key verticals even as ancillary operations reset amid cyclical and structural shifts.

As the company heads into the second half of FY26, the emphasis will likely be on translating capacity gains into improved margins, and steering the weaker segments toward recovery, all while managing external risks such as input cost volatility, weather disruptions and demand fluctuations in global commodity markets.

Also Read: Moody’s Downgrades Tata Motors’ Outlook Amid JLR Cyberattack Fallout

A bipartisan pair of U.S. senators has issued a pointed demand for answers from Tata Consultancy Services (TCS), raising sharp questions about the Indian IT giant’s use of H-1B visa holders while laying off American employees.

In a letter dated September 24, Senate Judiciary Committee Chairman Chuck Grassley and ranking member Dick Durbin asked TCS CEO Krithi Krithivasan to provide details by October 10, 2025, about the company’s hiring and layoff practices, wage parity, and whether any displacement of U.S. workers has occurred.

The senators noted that TCS has reportedly initiated plans to cut over 12,000 jobs globally, with some of those layoffs affecting U.S. staff. In that context, they highlighted that in fiscal 2025 TCS obtained approval to recruit 5,505 new H-1B employees, making it the second-largest corporate recipient of such approvals in the United States. They challenged the company to explain how it justifies continued H-1B petitions even as it trims its American workforce.

The letter raised nine specific queries. Among them: whether TCS has directly replaced American employees with H-1B workers; whether job postings for H-1B roles are segregated from general recruitment ads; and whether foreign hires receive the same compensation, benefits and terms as U.S. staff with comparable credentials.

The senators also asked whether TCS uses subcontractors or staffing firms to place H-1B workers and, more broadly, whether it has demonstrated genuine recruitment efforts in the U.S. labor pool before resorting to visa-based hiring.

The inquiry additionally pointed out that TCS is under an ongoing Equal Employment Opportunity Commission (EEOC) probe over allegations that the company may have dismissed older American employees in favor of younger H-1B visa hires, raising concerns of age discrimination.

The senators suggested that the timing of layoffs coupled with visa filings during the investigation heightened the need for transparency.

Reports noted that TCS is the sole Indian company among a broader group of ten tech and corporate entities that received similar letters from Grassley and Durbin. Those other firms, including Amazon, Apple, Google, Microsoft and Cognizant, were asked to address parallel concerns about mass layoffs and H-1B hiring, according to a report by The Financial Express.

Observers say the senators’ inquiry reflects mounting political pressure on the H-1B system, particularly under an administration that has recently floated a $100,000 fee for new H-1B petitions and vowed tighter oversight of foreign worker programs.

Critics argue that while the H-1B visa is meant to fill genuine skill gaps, its misuse may displace U.S. talent—or at least cast doubt on established hiring practices. As TCS prepares to respond, the outcome could prove consequential not only for its reputation but also for broader debates over immigration, workforce fairness, and corporate accountability.

Also Read: Eyewear Retail Major Lenskart Secures SEBI Approval For IPO