The year 2025 has been particularly challenging for the Tata Group, as indicated by recent data. Shares of Tata companies have been steadily declining, resulting in a significant reduction in the group's market cap this year. Due to falling shares of TCS, Trent, and Tata Motors, the total market cap of the group has seen a reduction of approximately ₹5.5 lakh crore.
As of December 31, 2024, the total market cap of Tata Group's listed companies was ₹31.09 lakh crore, which has now shrunk to ₹25.57 lakh crore, marking a decline of approximately 17.8%. The biggest blow came from the group's major companies, TCS and Trent.
Crisis Sparked by Decline in TCS Shares
Notably, TCS, the largest company in the Tata Group, saw its stock plummet by roughly 21% in 2025. This decrease has wiped out around ₹3.10 lakh crore from the group's market cap. Furthermore, Trent Ltd. faced challenges as its share, priced at ₹7,116 at the end of 2024, tumbled by around 42.5%, leading to an approximately ₹1.07 lakh crore loss in market value for the group.
In general, Tata Group companies have underperformed in 2025. Voltas Limited, The Indian Hotels Company Ltd. (IHCL), and Tejas Network Ltd have all experienced significant share declines. Shares of Tejas Network have plunged nearly 60% this year. Overall, out of 24 listed Tata Group companies, 18 have seen their market value diminish in 2025.
Some Gains Amid Losses
Shares in Tata Technologies Ltd fell by about 25%, while stocks of Tata Chemicals Ltd, Tata Teleservices (Maharashtra) Ltd, Tata Power Company Ltd, Oriental Hotels Ltd, Nelco Ltd, and Rallis India Ltd experienced declines of up to 38%, negatively impacting the group's market cap.
However, amidst these challenges, there has been positive momentum in companies like Titan Company Ltd, Tata Consumer Products Ltd, and Tata Steel Ltd, which have seen a rise in shares from 15% to 25% this year. This uplift has contributed approximately ₹1 lakh crore positively to Tata Group's market cap.
Several factors are contributing to the decline in Tata Group's market cap. In TCS's case, global economic slowdowns, rising trade tensions between the US and Europe, and the weakening of the rupee against the dollar have diminished foreign client demand. Meanwhile, Trent is facing headwinds from weakness in the retail sector.
