SBI Overtakes TCS to Claim Fourth Spot in India's Market Cap Rankings
In a significant shift in India's corporate landscape, the State Bank of India has surged past Tata Consultancy Services to become the country's fourth-largest listed company by market capitalisation. This milestone follows a sharp rally in SBI's stock price after the announcement of stronger-than-expected December-quarter earnings, reflecting renewed investor confidence in the state-owned banking giant.
Market Capitalisation Figures Reveal New Order
At the close of trading on February 10, SBI's market capitalisation stood at approximately ₹10.9 lakh crore, comfortably exceeding TCS's valuation of about ₹10.53 lakh crore. This rally has also propelled the state-owned lender ahead of ICICI Bank in terms of market value, with ICICI Bank's market capitalisation recorded at ₹10.05 lakh crore.
However, Reliance Industries continues to dominate as India's most valuable company with a market capitalisation approaching ₹20 lakh crore. Following RIL are HDFC Bank at ₹14.3 lakh crore and Bharti Airtel at ₹12.3 lakh crore, maintaining their positions as the second and third most valuable listed entities respectively.
Stock Performance Highlights Diverging Trajectories
On Wednesday, February 11, SBI shares climbed another 3.4% to reach ₹1,183, while TCS ended the trading session 2.5% lower at ₹2,909.40. This divergence becomes even more pronounced when examining year-to-date performance in 2026, with SBI stock showing an impressive 21% gain while TCS shares have declined by 8%. During this same period, the benchmark Nifty50 index has remained marginally lower by approximately 1%.
Strong Q3 Results Fuel SBI's Remarkable Rally
SBI's market cap surge followed the announcement of its December-quarter results on February 7. The lender reported a net profit after minority interest of ₹21,028.15 crore for Q3 FY26, representing its highest-ever quarterly profit and marking a substantial 24.49% year-over-year increase from ₹16,891.44 crore in Q3 FY25.
Net interest income rose 9% year-over-year to ₹45,190 crore, supported by steady loan growth across segments. Perhaps even more significantly, asset quality showed marked improvement sequentially, with the gross non-performing asset ratio declining to 1.57% in Q3 FY26 from 1.73% in the previous quarter, while net NPAs eased to 0.39% from 0.42%.
Analyst Perspectives and Investment Recommendations
Brokerage house Motilal Oswal noted that SBI delivered a strong all-round performance in the quarter, driven by robust business growth, margin expansion, and healthy asset quality metrics. The brokerage specifically highlighted that SBI reported net interest margins expanding 2 basis points quarter-over-quarter to 2.99%, with domestic NIMs reaching 3.12%.
"SBIN reported a strong all-round performance, led by robust business growth, margin expansion and healthy asset quality," the brokerage stated in its analysis.
Motilal Oswal further added that SBI expects net interest margins to remain above 3% in FY26 and over the long term, supported by consistent fee income streams. Credit growth stood at 15.6% year-over-year, and management has raised FY26 credit growth guidance to 13%–15%. Based on these positive developments, the brokerage has raised its FY27 and FY28 earnings estimates and reiterated a BUY rating with a revised target price of ₹1,300.
This market cap milestone represents a significant achievement for India's largest public sector bank, demonstrating how strong fundamental performance can translate into market recognition and valuation gains even in competitive market conditions.
