Tata Power, Trent, TCS, Tata Motors, IHCL dent group m-cap by Rs 4L crore in 2025

Thanks to weakness in shares of a majority of Tata group companies such as Tata Consultancy Services Ltd (TCS), Trent Ltd, The Indian Hotels Company Ltd (IHCL), Voltas Ltd, Tata Motors Ltd, Tejas Networks Ltd, Tata Technologies Ltd and Tata Elxsi Ltd, the group’s market capitalisation (m-cap) has fallen by over Rs 4,00,000 crore so far in calendar 2025. Flagship TCS alone dragged the group’s m-cap lower by Rs 3,57,123 crore, amid concerns over clients’ discretionary demand due to the Trump tariff war globally.

Revenue of TCS fell 3.3 per cent in the June quarter in constant currency (CC) terms, against drops of 1 per cent, 2 per cent, and 1.4 per cent QoQ, for HCL Tech, Wipro and tech Mahindra. Infosys in fact saw a 2.6 per cent QoQ growth in its revenue. In dollar terms also, TCS' reported a degrowth of 0.6 per cent QoQ against Infosys' growth of 4.5 per cent QoQ. IT firms cited various factors for the weak demand, including the impact of tariff and weak discretionary spending. TCS stock is down 24 per cent year-to-date.

Retail company Trent Ltd plunged 27 per cent and contributed Rs 68,205.60 crore negatively to the group's m-cap. Trent's sub-20 per cent revenue growth in Q1 was a key negative. Analysts said the like-to-like growth was in low-single digit, down from previous mid-single-digit. The management reiterated focus on revenue growth across micro markets implying pressure on LFL growth may continue. 

IHCL, Voltas, Tata Motors and Tejas Networks contributed Rs 10,400--Rs 14,300 crore negatively to the group m-cap. Overall, the Tata group group m-cap is down 13 per cent to Rs 26,98,202 crore from Rs 31,09,540 crore at the end of Calendar 2024. 

Tata Technologies Ltd, Tata Elxsi Ltd, Tata Teleservices (Maharashtra) Ltd, Tata Communications Ltd, Tata Chemicals Ltd and Tata Power Company Ltd also contributed negatively to the group m-cap.

"We remain concerned on execution delays and Mundra plant issues for Tata Power and prefer NTPC and JSW Energy to play the power upcycle in India," Jefferies said.

Tata Elxsi offers a strong long-term investment opportunity across its key verticals, despite current macroeconomic headwinds, HDFC Institutional Equities said this week.  The firm's automotive segment, which contributes significantly to revenue, experienced margin pressures due to muted growth and pricing resets. MOFSL has a 'Sell call on this stock.

This brokerage also has 'Sell' call on Tata Technologies, citing focus on mechanical design and on-site delivery, resulting in lower margins compared to companies engaged in high-value software services. 

Tata Steel Ltd, Titan Company Ltd and Tata Consumer Products Ltd, meanwhile, were some of the companies, contributing positively to the Tata group's m-cap.