SBI’s market cap now stands at nearly Rs 10.92 lakh crore, compared with TCS at Rs 10.52 lakh crore. The top three remain Reliance Industries at Rs 19.87 lakh crore, HDFC Bank at Rs 14.16 lakh crore and Bharti Airtel at Rs 11.47 lakh crore, as of Wednesday’s close.
The reshuffle follows an 11% rally in SBI shares over the last three trading sessions after its strong Q3 results, while TCS has slipped nearly 4% over the past five days amid broader concerns around artificial intelligence-led disruption in the global IT services sector.
Weak sentiment around technology stocks has dragged Indian IT counters lower in the last week, aiding SBI’s rise in the rankings.
SBI reported a net profit of Rs 21,030 crore for Q3, marking an 18% beat over Street estimates, driven by higher fee income and lower-than-expected provisions. Net interest income rose 9% year-on-year to Rs 45,190 crore, while margins remained stable at 2.99%, with domestic margins expanding to 3.12%. Management indicated confidence in sustaining margins above 3% in FY26 and over the long term.
The loan book grew 15.6% YoY, outpacing deposit growth of 9%, reflecting healthy credit demand. Asset quality continued to improve, with slippages moderating and credit cost remaining benign at 29 basis points.
Brokerages have turned constructive on the lender post third quarter earnings. Jefferies set a price target of Rs 1,300, citing strong return on equity prospects and value from subsidiaries.The brokerage has revised its earnings estimates upward and sees double-digit core profit growth over the next three years, valuing the bank at 1.5x its FY28 adjusted book value. Motilal Oswal has also raised earnings forecasts and expects healthy return ratios, factoring in around Rs 354 per share from subsidiaries.
Nomura lifted its target to Rs 1,235, reflecting an improved RoE outlook, while JP Morgan maintained an overweight stance with a target of Rs 1,250, saying SBI continues to deliver above-system growth with best-in-class asset quality among large public lenders.
Morgan Stanley struck a more balanced tone, maintaining an equal weight rating, noting valuations are approaching fair levels unless revenue growth surprises positively. BofA Securities remained neutral with a target of Rs 1,100, stating that at current multiples, risk-reward appears broadly balanced.
The contrasting trajectories of SBI and TCS highlight a broader market rotation. While banks are benefiting from credit growth and improving balance sheets, IT stocks are facing near-term uncertainty over AI-led pricing pressure and global tech spending.