In a significant reversal, Tata Consultancy Services (TCS), long considered the bellwether of India’s IT sector, is no longer the most valuable tech company by market capitalization. The shift reflects broader turbulence in the markets, combined with specific pressures on TCS’s growth outlook.
According to recent reports, TCS has seen one of the steepest drops among India’s top 10 firms. mint+2The Economic Times+2 Over a short span, its market cap has slid, driven in part by macroeconomic uncertainties such as forex volatility, visa policy changes, and slower client spending. The Times of India+1
One of the major factors cited is the H-1B visa fee hike in the U.S., which has dampened investor sentiment for Indian outsourcing firms. The Times of India Analysts also point to a weakening contribution from TCS within the broader Tata Group’s portfolio. TCS’s share of the Tata Group’s market value has dropped to its lowest since at least 2009. Business Standard
The most direct challenge to TCS’s dominance has come from Bharti Airtel, which has now overtaken TCS in market capitalization terms. The Times of India According to data quoted in recent reporting, Airtel’s market cap reached approximately ₹11.44 lakh crore, marginally more than TCS’s ₹11.42 lakh crore. The Times of India
This development is noteworthy: an Indian telecom player, not an IT services firm, has risen to eclipse TCS in valuation — underlining a changing landscape in India’s equity markets. Telecom’s renewed appeal, fueled by 5G expansion and data monetization, seems to be attracting more investor capital.
For TCS, the fall from the top is also symbolic. Once a near-constant driver of the Tata Group’s valuation, its relative importance is dwindling. Business Standard Critics suggest that without aggressive restructuring, aggressive innovation, or a stronger push into high-growth areas like AI and cloud, TCS could face continued headwinds.
Still, TCS retains strong global brand recognition. According to its own filings, it continues to rank among the top 20 global technology brands based on brand value.
