In a remarkable shift, ICICI Bank has surpassed IT giant Tata Consultancy Services (TCS) in annual net profit for FY25, reporting ₹51,029 crore. This marks the first time India’s second-largest private lender has crossed the ₹50,000 crore profit threshold, showcasing a five-year annualised profit growth of 40%.
TCS Trails Behind With Slower Growth
TCS, once India’s second-highest profit earner, reported a net profit of ₹48,553 crore in FY25, growing at a modest 8.5% annually over five years. The IT sector’s slowdown, driven by global uncertainties and client decision-making delays, has weighed down TCS’s earnings performance.
Profit Rankings: ICICI Rises, TCS Slips
While Reliance Industries, HDFC Bank, and SBI remain India’s top three profit-makers, ICICI Bank’s surge in profitability has pushed it ahead of TCS. This reshuffle highlights the banking sector’s rising dominance and the waning influence of traditional public sector enterprises like IOCL and Coal India.
Valuation and Market Cap: TCS Holds Its Ground
Despite lagging in profits, TCS still ranks third by market capitalisation, behind Reliance and HDFC Bank. Bharti Airtel is now fourth, with a ₹11.4 lakh crore valuation, followed by ICICI Bank at fifth with ₹10.2 lakh crore.
ICICI’s Strong Q4 Performance Boosts Analyst Confidence
For the March quarter of FY25, ICICI Bank outperformed expectations amid a volatile macroeconomic backdrop. Its consistent earnings led major brokerages like Jefferies, CLSA, and Nomura to revise their price targets upwards. Nomura now expects the stock to hit ₹1,690, citing robust return on equity and strong fundamentals.
Stock Performance: ICICI Outshines, TCS Slips
Since the beginning of 2025, ICICI Bank shares have risen by 12%, outperforming the broader Nifty50 index, which gained only 3.3%. Meanwhile, TCS shares have declined 15%, reflecting investor concerns over the IT sector’s near-term outlook.
Conclusion
ICICI Bank’s rise to the top of India’s profitability charts signals a broader trend in the Indian economy—where private banking is gaining strength while IT majors adapt to changing global dynamics.
