SBI Overtakes TCS to Claim Fourth Spot in India's Market Cap Rankings
In a significant financial milestone, the State Bank of India (SBI) has surpassed Tata Consultancy Services (TCS) to become the fourth most-valued company in India. This achievement also positions SBI as the most valued public sector entity in the country, marking a notable shift in the corporate landscape.
Market Capitalization Surge and Historical Context
As of Wednesday's market close, SBI's market capitalization stood at an impressive Rs 10.9 lakh crore. In comparison, Bharti Airtel holds a market cap of Rs 11.5 lakh crore, TCS is at Rs 10.6 lakh crore, and ICICI Bank follows with Rs 10.1 lakh crore, according to BSE data. The top two positions remain firmly with Reliance Industries at Rs 19.8 lakh crore and HDFC Bank at Rs 14.3 lakh crore.
This development comes after SBI recently overtook ICICI Bank's market cap on Monday, bringing it within striking distance of Bharti Airtel. The bank's market cap has surged by 11% since Friday, February 6, and by 20% year-to-date, driven by robust performance and positive analyst sentiment.
Historical data from ETIG reveals that the last time SBI had a higher market cap than TCS was in October 2010, while it last exceeded ICICI Bank's market value in July 2019. This resurgence underscores SBI's strengthened financial position and market confidence.
Record Quarterly Results and Analyst Reactions
The recent surge in SBI's market valuation is largely attributed to its record-breaking quarterly numbers for October-December 2025, announced on Saturday. These results have prompted a re-rating of the stock by several analysts, leading to upgraded target prices and positive outlooks.
Following the Q3FY26 results, both foreign and domestic brokerages issued bullish statements on SBI and its stock. Among the leading foreign brokerages, JP Morgan increased the SBI stock's September 2027 target price to Rs 1,250 from Rs 1,220 earlier. On Wednesday, the stock closed at Rs 1,183.
Analysts at JP Morgan noted, "SBI reported a strong quarter with broad-based beats across key parameters. What stood out for us was SBI's ability to deliver industry-leading growth while maintaining margins and an improving asset quality trajectory, which we believe can continue to support the re-rating."
Brokerage Upgrades and Future Projections
Morgan Stanley, another prominent foreign brokerage in India, raised its earnings per share (EPS) estimate for SBI for FY26 by 8%, citing strong Q3FY26 performance. However, the brokerage maintained its EPS estimates for FY27 and FY28 unchanged. In its report, Morgan Stanley stated, "We stay equal weight given near-full valuations. Key upside catalyst would be better-than-expected revenue growth. Downside risk would be negative surprise on asset quality." The brokerage kept its price target at Rs 1,025.
Similarly, Jeffries expressed bullish sentiment on SBI, setting a target price of Rs 1,300 and raising its estimates for FY27 and FY28. The broking house emphasized, "SBI stays among our top-picks."
On the domestic front, IIFL Capital has set a price target of Rs 1,230 for SBI, while Antique's target is Rs 1,210. These upgrades reflect widespread optimism about SBI's growth prospects and financial health.
Implications for the Banking Sector and Economy
SBI's ascent in the market cap rankings highlights the growing strength of the public sector banking sector and its ability to compete with leading private and IT giants. The bank's performance is seen as a positive indicator for the broader Indian economy, demonstrating resilience and growth potential in key financial institutions.
As SBI continues to close the gap with Bharti Airtel, market watchers are keenly observing whether it can sustain this momentum and potentially climb further in the rankings. The combination of strong quarterly results, analyst endorsements, and improving asset quality positions SBI for continued success in the competitive corporate arena.
