Tata stocks lose over Rs 8 lakh crore in 11 months. Is it time to revisit your portfolio allocations?
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TCS: Sector storm, execution drag and delayed spends
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Tata Motors: Once high-flying, now range-bound
Trent: From retail rocket to growth shock
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Titan, Tata Power and Voltas among heavy drags
Tata Communications, Tata Elxsi, Tejas see steep corrections
Resilience in hotels, chemicals and investments
The group-wide view
The Tata Group has seen its market capitalization shrink by over Rs 8.25 lakh crore in the 11 months since September 27, 2024, with investor sentiment turning sharply amid global macroeconomic turbulence, faltering demand, and company-specific shocks across multiple verticals. From Rs 34.56 lakh crore at its peak, the group's listed market cap now stands at Rs 26.31 lakh crore as of August 5, 2025, a 23.87% decline.This comes despite a strong five-year performance. According to Tata Sons ' FY25 annual report, 'the group nearly doubled revenue and more than tripled net profit and market cap over the past five years, during which it spent Rs 5.5 lakh crore.' It added that revenue from all listed and unlisted entities in FY25 stood at Rs 15.34 lakh crore, with net profit at Rs 1.13 lakh crore and market cap at Rs 37.84 lakh crore.Still, over the past year, nearly every major Tata Group stock has seen a sharp drop. Tata Consultancy Services ( TCS ), Tata Motors , and Trent alone account for nearly two-thirds of the decline, driven by industry-wide pressures in tech, demand shocks in retail, and geopolitical drag in autos.Once known as a buy-and-hold stock that could double money every five years, TCS shares are now enduring their worst phase since the 2008 financial crisis. The stock is down nearly 29% over the last 11 months, erasing over Rs 4.5 lakh crore in market value, the single largest contributor to the group's erosion.TCS's troubles are emblematic of broader industry issues, with the entire IT sector grappling with concerns over client spending in the USA, macroeconomic uncertainties, and AI-led transformation pressures.Recent Q1 results underscored the slowdown. Revenue fell 3.3% quarter-on-quarter in constant currency. While deal wins were healthy at $9.4 billion, no mega deals were signed. Management said: 'Delays in decision-making and project starts with respect to discretionary investments continued from Q4FY25 and intensified further in Q1FY26.'The company also announced layoffs of 2% of its workforce, about 12,000 employees. Jefferies flagged the move, warning it 'may lead to execution slippages in the near-term and higher attrition in the longer-run.'Elara downgraded the stock, citing 'delays in discretionary spending' and 'impact of geopolitical tensions in Europe.' Nomura cut its EPS forecasts and target price.Tata Motors saw its market cap fall 34% or over Rs 1.24 lakh crore. Its stock is down 43% from its record high, impacted by weakening demand and policy headwinds.U.S. President Donald Trump's 25% tariffs on Indian auto exports to the U.S. weighed heavily on sentiment. Q4 FY25 earnings were weak: net profit fell 51% to Rs 8,470 crore, revenue remained flat, and margins dipped.Technical analysts remain cautious. 'It would be premature to call a trend reversal in Tata Motors,' said Kunal Kamble. 'Until it closes above Rs 745, bearish pressure remains intact.' Others, like Anuj Gupta, note that monsoons and festival demand may offer some upside, especially in the EV segment.Trent, the retail powerhouse behind Zudio and Westside, saw a sharp 32% drop in value since September, erasing Rs 89,078 crore in market cap. It has fallen 24% in 2025 alone.Management indicated that the core fashion business would deliver around 20% growth in Q1FY26E, far below the 25%-plus growth aspiration for the coming years, triggering disappointment at its AGM.'The soft demand environment and sourcing issues might have impacted this below-consensus result,' HSBC analysts said, pointing to sourcing disruption from Bangladesh.Nuvama cut the stock to 'Hold' and slashed its target price to Rs 5,884 from Rs 6,627. HSBC trimmed its price target as well, while maintaining a 'Buy' stance.Luxury and lifestyle major Titan lost over Rs 35,094 crore in market cap, a 10.36% slide.Tata Power erased Rs 31,889 crore, down 20.57% over the 11-months period, while Voltas fell 29.42%, wiping out over Rs 18,168 crore in value. The weakness in these consumer and utility plays reflects a broader slowdown in discretionary demand and sectoral rotation in domestic portfolios.Tata Communications lost over Rs 12,275 crore, down 20.25%, while Tata Elxsi, a key engineering services firm, fell 23.35%, shaving Rs 11,306 crore in value since September 2024.Tejas Networks was among the worst performers in terms of percentage decline. The stock plunged over 50.93%, dragging its market cap down by Rs 10,598 crore, amid concerns around telecom capex and weak near-term visibility.Not all Tata stocks fell.Rallis India gained 14.28% in market cap, adding over Rs 911 crore, while Indian Hotels rose nearly 6%, increasing its value by Rs 5,943 crore between September 2024 and August 2025.Tata Investment Corporation also moved higher by 4.25% during the period. Meanwhile, Benares Hotels, though small in size, posted a 16% rise. Tata Steel , despite global commodity volatility, lost just 4.14%, or Rs 8,614 crore, showing some relative strength.Despite short-term volatility, Tata Sons emphasised long-term value creation in its FY25 annual report, pointing to growth in fundamentals. 'The group nearly doubled revenue and more than tripled net profit and market cap over the past five years,' it noted.But markets, for now, are focused on current earnings risk and sectoral trends. With over Rs 8.25 lakh crore in value lost across 11 months, investors may indeed be asking: is it time to revisit your portfolio allocations?: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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