42% of the exits in FY25 and FY26, and 33% in the first five months of FY27 relate to CEOs leaving pre-term due to variety of reasons such as resignations due to “personal reasons”, “pre-occupation,” “change in role” and succession planning, among others. | Photo Credit: HATICE GOCMEN

India Inc is seeing more CEOs exit before they complete their term and in some of these cases, investors are also reacting in a concerned manner as indicated by stock price movements.

The number of Nifty500 company chiefs who exited their roles rose sharply in FY26 and in almost 42 per cent of these exits, the MD/CEOs resigned before completing their term.

Businessline analysis of MD/CEO exits data provided by primeinfobase.com showed that there were 40 such exits in FY25, 52 in FY26 and already 27 in just April–August of FY27. If the current pace continues, FY27 could potentially surpass FY26. Of these, 42 per cent in FY25 and FY26 and 33 per cent in the first five months of FY27 relate to CEOs leaving pre-term due to variety of reasons such as resignations due to “personal reasons”, “pre-occupation,” “change in role” and succession planning, among others.

The data tracks exits of MD/CEOs in Nifty 500 companies who are also on the Board.

Within this non-retirement category, financial services has emerged as the biggest source of exits with six of them in FY26 compared with three in FY25. Consumer discretionary and FMCG also hold the bulk of such churn in FY26 at 6.

Interestingly, the market reaction to CEO exits has generally been negative, indicating investors are often treating leadership departures as a risk signal rather than a routine event.

Analysis of key exits (due to reasons other than retirement) in FY26 and FY27 shows that in seven out of the nine cases, stock prices fell in the week immediately after the announcement was made.

For instance, Sudhir Sitapati’s exit from Godrej Consumer Products, announced on August 11, 2026, led to stock price falling 9.2 per cent over the week. Similar impactful exits were by Anup Kumar Saha from Bajaj Finance and Pradeep Kumar Bakshi from Voltas, which led to the respective stocks falling by 7.2 per cent and 5.4 per cent in the first week of announcement.

Notable exceptions are Rohit Jawa of Hindustan Unilever and Suren Jain of Jaiprakash Power Ventures, as the company’s scrips gained in week following the announcements. Interestingly, the exit of Sumant Kathpalia from governance issues-hit IndusInd Bank, saw the stocks rise by 0.2 per cent on the first day post announcement, subsequently falling by 0.6 per cent over the week.

Shiv Nath Ghosh, Chief Commercial Officer, Professional Talent Solutions, Randstad India, said that what has changed is the speed and complexity of the decisions CEOs are now expected to make. “AI-led transformation and geopolitical volatility, among other things, are compressing the window in which leaders are expected to deliver results.”

Kamal Karanth, founder of specialist staffing firm Xpheno said that churn, specifically in the consumer sector, is largely driven by shifts in market dynamics and consumer behaviour, rather than performance issues. Over the last few years the consumer durables and goods sectors have faced margin pressure, intensified competition, and slower volume led growth, he said.

“The entry and rapid scaling of smaller brands, D2C players, and digital first competitors has diluted the dominance legacy players historically enjoyed. This has increased pressure on top leadership to defend growth deceleration, protect market share, and deliver results in a far more competitive environment. Related pressures from investors and boards inevitably travel across and up to the CXO offices, resulting in leadership transitions,” he added. 

Published on August 25, 2026