In a major shake-up of India’s stock market rankings, Bharti Airtel has overtaken Tata Consultancy Services (TCS) to become the third most valuable listed company in India by market capitalization.
As of July 21, 2025:
- Airtel’s market cap: ₹11.45 lakh crore
- TCS’s market cap: ₹11.23 lakh crore
Airtel is now only behind Reliance Industries and HDFC Bank in terms of total market value.
🚀 What’s Driving Airtel’s Rise?
- Strong YTD Performance: Airtel shares are up 20.2% in 2025, boosted by:
- Rising average revenue per user (ARPU)
- Growth in mobile data and broadband
- Positive investor sentiment towards telecom
- Foreign Investor Inflows: Despite FIIs pulling out from Indian equities, telecom stocks have seen strong inflows, with Airtel among the top beneficiaries.
- Stable Earnings Outlook: Investors see telecom as a resilient sector, less exposed to global economic volatility.
📉 Why Is TCS Falling?
Tata Consultancy Services, India’s largest IT services company, has seen a 22% decline in market cap this year due to:
- Weak global demand for tech services
- Uncertainty around AI’s impact on outsourcing
- Delayed client decision-making in Western markets
🧠 What This Shift Means
The Airtel overtakes TCS in market cap moment is symbolic of shifting investor focus in Indian markets:
- From IT to Telecom: Telecom is gaining favor for its domestic demand strength and digital infrastructure relevance.
- From global risk to local growth: IT faces macro risks from U.S. and EU slowdowns, while telecom thrives on India-first demand.
📌 Summary Table
| Metric | Bharti Airtel | TCS |
|---|---|---|
| Market Cap | ₹11.45 lakh crore | ₹11.23 lakh crore |
| YTD Stock Performance | +20.2% | –22.0% |
| Ranking | #3 in India | #4 in India |
| Key Drivers | Telecom growth, FII support | Global tech headwinds |
🧭 What to Watch Next
- Can Airtel maintain its lead? Watch for tariff changes, 5G rollouts, and regulatory updates.
- Will TCS bounce back? A rebound may depend on AI adoption, client budgets, and new contracts.
- Who’s next? ICICI Bank and Infosys are also in the top-10 and could shift rankings if market trends continue.
🌐 Final Thoughts
Airtel overtakes TCS in market cap, showing the changing priorities of Indian investors. As the digital economy expands, telecom firms like Airtel are becoming central to India’s growth story, while traditional IT firms must adapt quickly to new challenges.
