Saturday, 14 Feb, 2026
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Markets are tilting toward domestic-growth sectors. As global uncertainty clouds export plays, lenders such as SBI—fuelled by credit demand at home—are emerging as valuation heavyweights
State Bank of India (SBI) has muscled its way into India’s top tier of listed companies, overtaking Tata Consultancy Services (TCS) to become the country’s fourth-most valued firm by market capitalisation—a shift that underscores how investor preference is tilting toward domestic financials over export-facing IT.
SBI’s shares rose 3.4% on February 12 to a record Rs 1,196, pushing its market capitalisation to Rs 11.04 lakh crore. The rally lifted the state-run lender past TCS, whose shares fell 4.83% to Rs 2,769, valuing it at Rs 10.2 lakh crore. The reshuffle places SBI behind only Reliance Industries (Rs 19.72 lakh crore), HDFC Bank (Rs 14.26 lakh crore) and Bharti Airtel (Rs 12.14 lakh crore) among India’s most valuable companies.
The market’s verdict has been emphatic. SBI’s stock has surged 62 per cent over the past year and more than 43 per cent in the last six months, riding on three consecutive quarters of strong earnings. Earlier this week, the stock had jumped nearly 8 per cent in a single session, pushing its valuation beyond the Rs10- lakh crore milestone for the first time—a psychological as well as financial marker.
The immediate trigger was its December quarter (Q3FY26) performance. The bank reported a 24.5 per cent year-on-year rise in net profit to Rs 21,028 crore—its highest-ever quarterly profit. The earnings beat was broad-based. Non-interest income growth remained robust, net interest income (NII) was supported by solid credit expansion, and recoveries from written-off accounts added to the bottom line. A dividend income of over Rs 2,200 crore from SBI Mutual Fund further strengthened the quarter’s performance.
More importantly, the management signalled confidence in sustaining momentum. SBI raised the upper end of its credit growth guidance to 13–15 per cent from 12–14 per cent earlier, while maintaining its exit net interest margin (NIM) guidance at around 3 per cent for FY26. In a rate-sensitive environment where margins are under scrutiny, holding NIM guidance steady while lifting loan growth expectations sends a reassuring message to investors about asset quality and demand visibility.
The contrast with TCS could not be sharper. The IT major’s shares have fallen 36 per cent from their lifetime high of Rs 4,552 touched on August 30, 2024. Global tech spending uncertainties and slower discretionary demand have weighed on sentiment toward large IT exporters. As a result, TCS’s valuation has slipped to Rs 10.2 lakh crore, allowing SBI to edge past it in the market-cap rankings.
The broader implication is a rotation in market leadership. For much of the past decade, IT services companies dominated India’s valuation tables, benefiting from global outsourcing tailwinds and high-margin digital transformation deals. Today, domestic-facing financials appear to be commanding investor confidence, backed by resilient credit growth, improved balance sheets and sustained profitability.
SBI’s ascent also signals the scale and stability that large public sector banks have achieved after years of balance sheet repair. Recoveries from written-off accounts and stronger non-interest income suggest a maturing earnings profile less vulnerable to credit shocks. With credit growth guided at up to 15 per cent and margins expected to hold near 3 per cent, the bank is positioning itself as a steady compounder rather than a cyclical bet.
For markets, the message is clear: capital is flowing toward sectors aligned with India’s domestic growth narrative. As global uncertainties cloud export-linked sectors, lenders like SBI—anchored in credit demand at home—are emerging as valuation heavyweights.
Whether SBI can consolidate its position above TCS will depend on sustaining earnings momentum and asset quality discipline. But for now, the baton in India’s market-cap league table has decisively shifted from code to credit.
