In a major milestone, Bharti Airtel has overtaken Tata Consultancy Services (TCS) to emerge as India’s third-most valuable listed company, with a market capitalization of approximately ₹11.45 lakh crore as of July 21, 2025.
What’s Driving the Shift
- Airtel’s market cap surged by ₹2.22 lakh crore over TCS, riding on a strong subscriber premiumization trend, a sharp drop in capital expenditure, and growing expectations for higher free cash flows.
- Analysts point to Jefferies’s “Buy” rating with a ₹2,370 one-year share price target citing lower competition and operational efficiency as catalysts.
TCS Faces Pressure; Airtel Takes the Lead
- In contrast, TCS has seen its valuation drop by roughly ₹3.4 lakh crore amid weak global IT demand and AI-related disruption. Market observers continue to expect headwinds for large IT firms.
- Airtel’s steady advance demonstrates how mid-sized telecom firms, with stable revenue models and controlled capital outflows, can outperform large-cap tech stocks in uncertain markets.
Beyond the Numbers: What This Means
- Airtel now ranks third behind Reliance Industries (₹19.3 lakh crore) and HDFC Bank (₹15.3 lakh crore) among India’s top listed entities.
- The shift highlights broader investor sentiment: telecom’s recurring revenue and improving margins are increasingly attractive relative to cyclical IT services.
What’s Ahead
- Airtel’s upcoming focus areas include 5G rollout expansion, fixed broadband growth, and strategic partnerships like the collaboration with Google Cloud and SpaceX’s Starlink.
- For TCS, the challenge will be navigating slowing global tech budgets and repositioning in an AI-driven services environment.
Final Take
Investors are signaling a structural shift: telecom’s predictability and tech integration are outperforming traditional IT. Airtel’s leap reflects not just a stock market re-ranking but India’s changing economic narrative.
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