TCS Faces Worst Stock Market Crash Since 2008 — ₹5.6 Lakh Crore Wiped Out

Tata Consultancy Services (TCS), India’s largest IT company and a crown jewel of the Tata Group, has witnessed its sharpest decline since the 2008 global financial crisis. The stock has plunged nearly 26% in 2025, erasing over ₹5.6 lakh crore in market value.

This steep fall comes despite TCS maintaining strong fundamentals such as robust profitability, a healthy dividend yield, and minimal debt. Analysts say the current slide is largely driven by weak global IT demand, AI-led disruptions, large-scale layoffs, and heavy institutional selling.

TCS recently announced a 2% global workforce reduction, impacting nearly 12,000 employees. While the company positions this move as a strategic realignment due to skill mismatches, investors see it as a signal of deeper challenges in adapting to the AI-driven digital transformation.

The broader IT sector has also suffered, with the Nifty IT index falling 14–25% in 2025, making it one of the worst-performing sectors. Large institutional investors, including LIC, have incurred massive portfolio losses due to this downturn.

However, many experts believe this correction could be an opportunity for long-term investors. With TCS’s strong balance sheet, global presence, and focus on next-generation technologies, the company still holds long-term growth potential once the market stabilizes.

In conclusion, TCS’s current slump reflects short-term challenges rather than a collapse of fundamentals. For investors, the key question is whether to panic and exit or buy the dip for future gains.