SBI Flips TCS to Become India’s 4th Most Valuable Company; Market Cap Hits 10 9 Lakh Crore

Mumbai, February 12, 2026 — In a historic reshuffle on the Indian bourses, the State Bank of India (SBI) has officially overtaken Tata Consultancy Services (TCS) to become India’s fourth most valuable listed entity. This seismic shift reflects a broader market rotation as investors move their capital from "AI-shaken" IT firms into high-growth banking behemoths.

The Massive M-Cap Gap

As of Wednesday's market close, SBI’s valuation skyrocketed following a relentless rally in its share price.

• SBI’s Valuation: Approximately ₹10.92 lakh crore.

• TCS’s Valuation: Slipped to nearly ₹10.52 lakh crore.

• The Leaderboard: SBI now sits firmly behind only Reliance Industries (RIL), HDFC Bank, and Bharti Airtel.

Why SBI is Winning: The "Triple-Threat" Success

SBI’s ascent is not a fluke; it is backed by what analysts are calling the bank's "cleanest balance sheet" in decades.

1. Record-Breaking Profits: SBI recently reported its highest-ever quarterly net profit of ₹21,028 crore (Q3 FY26), a staggering 24.5% year-on-year increase.

2. Superior Asset Quality: The bank’s Gross NPA has moderated to 1.57%, proving that India’s public sector lender can compete with—and beat—private sector efficiency.

3. Credit Growth: Management has raised its loan growth guidance to 13-15%, signaling immense confidence in the domestic economy.

The IT Slump: Why TCS is Falling

While SBI is soaring (up 21% YTD), TCS has faced a tough 2026, with its stock down nearly 8% this year. The primary culprit? AI Disruption. Global concerns regarding AI tools like Anthropic and OpenAI potentially replacing traditional IT service models have led to a massive sell-off in the tech sector. This "IT-to-Banking" rotation has directly benefitted SBI, making it the new darling of institutional investors.

India's Top 5 Most Valuable Companies (Feb 2026)

The Verdict: A New Era for PSU Stocks

For years, TCS was the undisputed silver-medalist or top-three player. Today, SBI’s rise signifies the "Re-rating" of the Public Sector. With a low P/E ratio compared to IT, experts suggest SBI has even more room to grow, with targets now set at ₹1,300 per share.