TCS Loses Relative Dominance in Tata Group as Trent, Titan Emerge as Growth Engines

When N Chandrasekaran became chairman of Tata Sons in February 2017, TCS was the Tata Group’s primary financial engine. Nearly a decade later, its dominance has weakened considerably as faster-growing businesses such as Trent and Titan have emerged as increasingly important contributors to the group’s earnings and market value. TCS accounted for 76.6%. Its share had declined to 59.2%. Its contribution to the group’s overall market capitalisation fell even more sharply, from 57.9%. This decline does not reflect a contraction at TCS. The company has continued to grow its revenue and profits, but several other Tata businesses have expanded at a much faster pace. Since February 2017, TCS’s market capitalisation has compounded at roughly 6.5% annually, significantly below the growth rates achieved by some of the group’s newer engines. Trent stands out as the strongest example. Its market capitalisation has grown at a CAGR of 36.7%, while revenue has expanded at around 30.6% and profit at an exceptional 45.6% annually over the same period. TCS remains the largest contributor to the Tata Group’s profit pool. However, its relative share has declined as businesses including Titan, Trent, Tata Consumer, Tata Power and Tata Capital have rapidly expanded their earnings and increased their importance within the group.