TCS' m-cap contribution to Tata Group drops to lowest level since 2009

TCS mcap contribution to the Tata Group drops to almost half of its listing figure

Tata Consultancy Services (TCS) share in the combined market capitalisation of the Tata Group’s listed entities has fallen to 44.8 percent -- its lowest level since March 2009. That is a sharp slide from its peak since getting listed, of 74.4 percent in March 2020. The erosion in TCS’ market cap contribution mirrors its declining share of group profits as it reported below than estimated earnings in its Q4FY25 performance.

A look at year-to-date market capitalisation figures of the Tata Group of companies reveals 18 out of 24 are in red with TCS as the largest contributor, falling 19.48 percent, erasing nearly Rs 2.89 lakh crore in value.

In terms of its share price, TCS has been observing a downward trend since December 2024, falling 25.62 percent from Rs 4,473.90 to reach Rs 3,327.70 in the current scenario. Its year-to-date fall stands at 17.46 percent.

At present, TCS' market capitalisation is at Rs 11.94 lakh crore, contributing around 45 percent to the Tata Group’s total listed mcap of Rs 26.61 lakh crore. This, potentially places the IT giant to underperform the group’s aggregate market cap for the fifth consecutive year — its longest such stretch since it was listed in August 2004.

The IT bellwether has lost 15 percent in market value since March 2024, underperforming the broader group’s 13.3% decline over the same period.

TCS had debuted on the bourses in August 2004 with a market value of Rs 47,232 crore, accounting for 49 percent of the group’s total at the time.