SBI Surpasses TCS to Become India's Fourth-Largest Listed Company
In a significant market reshuffle, the State Bank of India (SBI) has overtaken Tata Consultancy Services (TCS) to become India's fourth-largest listed company by market capitalisation. This shift is supported by a sharp post-results rally and improving sentiment around public sector banks, reflecting broader trends in the financial and technology sectors.
Market Capitalisation Details and Rankings
According to recent data, SBI's market capitalisation now stands at nearly Rs 10.92 lakh crore, surpassing TCS at about Rs 10.52 lakh crore. The country's top three listed companies remain unchanged: Reliance Industries leads with Rs 19.87 lakh crore, followed by HDFC Bank at Rs 14.16 lakh crore and Bharti Airtel at Rs 11.47 lakh crore, based on Wednesday's closing figures.
Drivers Behind the Reshuffle
The reshuffle comes after SBI shares rallied approximately 11% over the last three trading sessions, following strong third-quarter earnings. In contrast, TCS shares have declined nearly 4% over the past five days, amid broader concerns about artificial intelligence-led disruption in the global IT services sector. Weak sentiment around technology stocks has dragged Indian IT counters lower over the past week, indirectly aiding SBI's rise in the market capitalisation rankings.
This divergence highlights a broader market rotation, with banks benefiting from robust credit growth and improving balance sheets, while IT stocks face near-term uncertainty linked to AI-driven pricing pressure and global technology spending trends.
SBI's Strong Third-Quarter Performance
SBI reported a net profit of Rs 21,030 crore for the third quarter, marking an 18% beat over Street estimates. The performance was supported by higher fee income and lower-than-expected provisions. Net interest income rose 9% year-on-year to Rs 45,190 crore, while margins remained stable at 2.99%, with domestic margins expanding to 3.12%. Management has expressed confidence in sustaining margins above 3% in FY26 and over the long term.
The bank's loan book expanded 15.6% year-on-year, outpacing deposit growth of 9%, reflecting healthy credit demand. Asset quality also improved, with slippages moderating and credit costs remaining contained at 29 basis points.
Brokerage Reactions and Outlook
Following the third-quarter results, brokerages have turned constructive on SBI. Jefferies set a price target of Rs 1,300, citing strong return on equity prospects and value from subsidiaries. The brokerage has revised its earnings estimates upward and expects double-digit core profit growth over the next three years, valuing the bank at 1.5 times its FY28 adjusted book value.
Motilal Oswal has also raised earnings forecasts and expects healthy return ratios, factoring in around Rs 354 per share from subsidiaries. Nomura raised its target price to Rs 1,235, reflecting an improved return on equity outlook, while JP Morgan maintained an overweight rating with a target of Rs 1,250, stating that SBI continues to deliver above-system growth with best-in-class asset quality among large public sector lenders.
Morgan Stanley maintained an equal weight rating, noting valuations are approaching fair levels unless revenue growth surprises positively. BofA Securities retained a neutral stance with a target of Rs 1,100, stating that at current valuation multiples, the risk-reward profile appears broadly balanced.
