SBI Overtakes TCS To Become India’s Fourth-Largest Company After Strong Q3 Rally

State Bank of India (SBI) has overtaken Tata Consultancy Services (TCS) to become India’s fourth-largest company by market capitalisation, after a sharp rise in its share price following better-than-expected December quarter (Q3 FY26) earnings.

The strong post-results rally added over ₹1 lakh crore to SBI’s market value in a short span, pushing it ahead of both ICICI Bank and TCS.

SBI Market Capitalisation Crosses ₹10.94 Lakh Crore

SBI now commands a market capitalisation of ₹10.94 lakh crore, making it one of the few Indian companies to cross the ₹10 lakh crore milestone. 

This places SBI around ₹40,000 crore higher than TCS and nearly ₹90,000 crore higher than ICICI Bank. The jump highlights a strong shift in investor preference towards banking stocks, especially large lenders with stable earnings and improving asset quality.

SBI Share Price Surges After Q3 FY26 Results

On Wednesday (February 11), SBI shares rose another 3.5%, taking the bank’s week-to-date gain to 11%.

In comparison, the Nifty50 gained only around 1% during the same period, showing that SBI’s rally was clearly driven by stock-specific triggers rather than broader market movement.

Strong Q3 FY26 Earnings Support Sentiment

SBI reported a strong December quarter performance. The bank posted a net profit of ₹21,028 crore, reflecting healthy growth.

Net interest income (NII) also increased 9.04% year-on-year to ₹45,190 crore, supported by:

• robust loan growth
• stable margins
• improving asset quality

Following recent trade developments involving the US and the European Union, SBI also raised its credit growth outlook to 13%–15%, compared with its earlier estimate of 12%–14%.

TCS Under Pressure As IT Sector Faces AI Concerns

The shift in market value is also being driven by weakness in IT stocks.

TCS and several other IT companies have come under pressure due to concerns that the growing adoption of artificial intelligence could disrupt traditional business models.

So far in 2026:

• TCS shares are down 8%
• SBI shares are up 21%
• Nifty50 is down around 1%

A Rare Repeat Of History

This is not the first time SBI has crossed TCS in market capitalisation. The last time it happened was in October 2007, when both companies were valued at around ₹1 lakh crore.

Since then, both firms have expanded nearly tenfold, and now stand above ₹10 lakh crore in market value.

Read more: Avanti Feeds Q3 FY26 Earnings Results Out: Shares Rise As Profit And Margins Improve. 

Conclusion

SBI’s rise to become India’s fourth-largest company reflects strong investor confidence in its earnings, loan growth outlook, and improving fundamentals. At the same time, pressure on IT stocks like TCS has contributed to this valuation shift. The market is clearly rewarding consistent banking performance, especially after strong quarterly results.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.