TCS Bleeds ₹5.66 Lakh Crore in Market Value: Worst Crash Since 2008

Tata Consultancy Services (TCS), the crown jewel of the Tata Group and India’s largest IT services firm, is enduring its steepest market decline since the 2008 global financial crisis. In a year marked by economic headwinds, geopolitical uncertainty, and structural shifts in the tech industry, TCS has shed nearly ₹5.66 lakh crore in market capitalization — a staggering 34% drop from its August 2024 peak of ₹4,585.90 per share.

As of August 2025, the stock trades at ₹3,019.70, slashing its market cap to ₹10.93 lakh crore from a high of ₹16.59 lakh crore. This 26% year-to-date decline makes 2025 the worst-performing year for TCS in nearly two decades.

Historic Decline in Market Value

The impact has rippled across institutional portfolios. Life Insurance Corporation of India (LIC), which holds a 4.86% stake in TCS, has seen its holdings shrink by over ₹27,000 crore.

Metric	Value
Peak Share Price (Aug 2024)	₹4,585.90
Current Share Price (Aug 2025)	₹3,019.70
Drop from Peak	-34%
Market Cap Lost	₹5.66 lakh crore
Current Market Cap	₹10.93 lakh crore
Peak Market Cap	₹16.59 lakh crore

Catalysts Behind the Crash

• Weak Q1 FY26 Earnings: Revenue rose just 1.3% YoY to ₹63,437 crore; net profit up 5.9% to ₹12,760 crore — both below expectations.
• Global Headwinds: U.S. tariffs under Trump 2.0 have dampened client spending in key markets like the U.S. and Europe.
• Workforce Layoffs: TCS is cutting 2% of its global workforce (~12,000 jobs), signaling a shift toward AI-led delivery models.
• Technical Breakdown: Analysts warn of no bullish reversal signs; next support zone is ₹2,682.

2025 Performance Snapshot

Month	Closing Price	Monthly Change
Jan	₹4,112.39	—
Feb	₹3,483.25	-15.3%
Mar	₹3,606.15	+3.5%
Apr	₹3,453.70	-4.3%
May	₹3,463.40	+0.2%
Jun	₹3,462.00	-0.1%
Jul	₹3,036.80	-12.3%
Aug	₹3,036.40	-0.1%

YTD Decline (2025): -26%
TCS’s downturn is not just a company-specific event — it reflects broader challenges facing India’s $250 billion IT services industry. The shift toward automation, AI-led delivery, and geopolitical realignments are forcing legacy players to rethink their operating models. While Infosys and Wipro have also seen declines, TCS’s sheer size makes its fall particularly symbolic.

Despite the turbulence, TCS remains a formidable force with deep client relationships, strong cash reserves, and ongoing investments in AI, cloud, and cybersecurity. The company’s recent expansion in Mexico — its eighth center in the country — signals a strategic pivot to diversify delivery hubs and tap into Latin American talent.