TCS market cap falls below ₹10 Lakh crore for first time since 2020

In a major symbolic blow to the Indian IT sector, Tata Consultancy Services (TCS) saw its market capitalization slip below the ₹10 lakh crore mark on February 12, 2026. This is the first time the IT behemoth has traded below this psychological threshold since December 2020.+1

The fall was part of a massive sectoral rout dubbed the “SaaSpocalypse” by market analysts, which wiped out roughly ₹1.3 lakh crore in investor wealth across the Nifty IT index in a single day.

Market Cap Leaderboard Shift (Feb 12, 2026)

The decline has caused a significant reshuffle in the rankings of India’s most valuable companies. TCS, which was long the undisputed #2, has now slipped to the 6th position.

Why is the Stock Crashing?

The share price hit a 52-week low of ₹2,752.75 (down over 5% intraday) due to a “perfect storm” of macro and technology-specific fears.

1. The “Anthropic Shock”

The immediate trigger was the launch of Claude Cowork by the US-based AI startup Anthropic.

• The Threat: This new AI tool is designed to automate complex corporate legal, compliance, and sales workflows—the very tasks that form the backbone of the traditional “hours-billed” Indian IT outsourcing model.
• Investor Fear: Markets are now aggressively pricing in the risk that AI won’t just help IT firms, but may actually replace the need for large-scale human teams.

2. Weak Q3 Performance

TCS’s recent earnings for the quarter ending December 2025 further dampened sentiment.

• Consolidated Net Profit: Fell 14% YoY to ₹10,657 crore.
• Sequential Decline: Profit was down 12% compared to the previous quarter (Q2FY26), reflecting pressure on margins and discretionary spending.

3. US Macro Pressures

Stronger-than-expected U.S. jobs data (130,000 new jobs in January) has cooled hopes for near-term interest rate cuts by the Federal Reserve. High interest rates typically lead to lower valuations for growth sectors like IT and can prompt global clients to tighten their tech budgets.+1

Expert Commentary: A Structural Shift?

The sentiment on Dalal Street has turned sharply cautious:

• Jefferies: Labeled the current panic as a “SaaSpocalypse,” noting that trading has shifted to a “get me out” style of selling.
• Geojit Investments: Dr. VK Vijayakumar warned that tech stocks are unlikely to recover soon as investors rotate capital into “performing” sectors like banking and public sector units (PSUs).
• Kotak Institutional Equities: Highlighted that the application of AI to legacy tech requires significant “heavy lifting,” but investors are currently focused on the disruption of the legacy revenue model.