TCS' 34% share price crash from peak hits LIC portfolio — ₹27,000 crore wiped out
In fact, TCS shares have been on a downward trend since hitting an all-time high of ₹ 4,592 apiece in August 2024, amid growth concerns in key markets such as the US and Europe, brought down by Donald Trump's sweeping tariffs on major trading partners.
The decline accelerated after the release of TCS Q1 results, which fell short of Street estimates, also triggering the brokerage firms to lower the target multiple for the stock. In July alone, TCS stock shed 12% of its value, its second-biggest monthly drop of 2025 and continued to face selling pressure in early August. On Monday (August 04), the Tata group stock fell below the ₹ 3,000 mark for the first time since October 2022 to reach ₹ 2991.60 apiece.
At current levels of ₹ 3,045, the TCS stock is trading at a 34% discount to its August peak, with the crash erasing ₹ 5.56 lakh crore from the company's market capitalisation and making as one of the worst performers among group stocks in the current year so far.
LIC is one of the largest shareholders in the company, holding a 4.86% stake at the end of the June quarter, as per the BSE shareholding data. The crash has also caused the insurance behemoth's investment value to drop by nearly ₹ 27,000 crore.
Meanwhile, the company missed June quarter revenue estimates as clients remained cautious about non-essential spending amid U.S. tariff-related uncertainty. Its revenue rose 1.3% YoY to ₹ 63,437 crore, while net profit increased 5.9% to ₹ 12,760 crore.
The brokerage expects weak performance to continue in the remaining period of FY26, citing persistent macroeconomic pressures, delayed project ramp-ups, and subdued discretionary spending that continue to weigh on demand.
Anshul Jain, Head of Research at Lakshmishree, said, 'TCS has slipped to the major support zone of ₹ 3,018, but the charts show no sign of a bullish reversal or constructive structure forming. Price action remains weak, and volumes are unconvincing, indicating a lack of strong buying interest. Without evidence of accumulation, the probability of a sustained rebound from this zone is low.'
"We expect the stock to eventually give up the ₹ 3,000 level and head towards the monthly swing low of ₹ 2,682. This remains the next key support area and a likely near-term target unless a high-volume reversal changes the current negative bias," he further added.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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