Bharti Airtel Overtakes TCS to Become India’s Third Most Valuable Company

Bharti Airtel has overtaken Tata Consultancy Services (TCS) to claim the position of India’s third-largest listed company by market capitalisation. The telecom giant's sharp rise in valuation comes amid a positive investor outlook and sustained stock momentum in 2025.

Airtel Surpasses TCS in Market Cap

On July 21, Bharti Airtel’s shares rose by 1%, pushing its market capitalisation to ₹11.45 lakh crore, which is ₹2,220 crore higher than TCS. This development has shifted Airtel ahead of India’s biggest IT exporter and placed it firmly in the third spot among listed companies.

Reliance Industries remains at the top with a market cap of ₹19.3 lakh crore, followed by HDFC Bank at ₹15.3 lakh crore.

Massive Market Cap Gains in 2025

Including its partly paid-up shares, Airtel’s total market cap has increased by nearly ₹2 lakh crore in 2025 alone, reaching ₹11.5 lakh crore. This makes it the second-highest gainer among Nifty50 companies this year, trailing only Reliance Industries, which has added ₹3 lakh crore in market value since January.

TCS Faces Market Cap Erosion

In stark contrast, Tata Consultancy Services has lost ₹3.4 lakh crore in market capitalisation so far in 2025. The decline has been attributed to concerns over the slowing US economy and growing disruptions caused by generative AI technologies.

Market analysts have flagged that India’s large IT firms may continue to face revenue growth pressures, while mid-sized companies are expected to be more resilient and possibly outperform in the near term.

Airtel’s Historic Milestone After 15 Years

Although this isn’t the first time Bharti Airtel has crossed TCS in market cap — the last occurrence was in October 2009 — this is the first time it has secured the third position in India’s stock market rankings. Notably, just three years ago, Airtel was ranked 10th, highlighting the significant shift in the company’s valuation trajectory.

Investor Confidence and Bullish Analyst Outlook

Analysts are becoming increasingly optimistic about Airtel’s future, citing multiple factors such as:

• Easing industry competition

• Lower capital expenditure intensity

• Strong revenue visibility from India’s consumption growth

Jefferies, a global brokerage firm, has maintained a “Buy” rating on Bharti Airtel with a 12-month price target of ₹2,370. The firm believes Airtel is well-positioned to benefit from a favourable market structure and expects mid-teen revenue growth, along with potential for valuation re-rating in the coming quarters.

Shareholding and Stock Performance

As of March 2025, Bharti Airtel had 609.44 crore outstanding shares, including 39.23 crore partly paid-up shares. The company’s stock has delivered a 20.2% return since January, significantly outperforming the benchmark Nifty50, which has gained only 6% in the same period. In contrast, TCS shares have dropped 22% year-to-date, reflecting investor concerns over the IT sector's short-term challenges.

What This Means for the Indian Market

Bharti Airtel’s rise signals a changing dynamic in India’s equity landscape, where traditional IT giants are being challenged by high-growth consumer and telecom stocks. As digital consumption continues to expand and competition in the telecom space stabilises, Airtel is poised to attract long-term investor interest.

The telecom major’s ascension to the third spot is not just a valuation milestone, but also a testament to its business resilience, diversified offerings, and strategic growth amid shifting economic and technological conditions.