TCS and Tata Motors down 42% from peak, wiping out more than Rs 4L cr from Tata shares by 2025 amid boardroom turmoil

Tata Group investors have little to celebrate this year. As boardroom infighting within Tata Trusts comes to light, shares of major group companies have fallen sharply from their all-time highs, with Tata Motors down 42% and Tata Consultancy Services (TCS) down 33%, taking the group’s combined market value down by Rs 4.56 lakh crore by 2025 alone.

Nearly half of the Tata Group’s 30 listed companies, about 13 in total, have posted double-digit declines this year, underscoring broader weakness in India’s most influential conglomerate. Ten of the group’s top stocks are down between 30% and 60% from their 52-week highs, according to data from ACE Equity.

Tejas Networks tops the list, down 59% from its annual peak of Rs 1,460 to Rs 600, making it the worst performing company among Tata companies. Retail indicator Trent is down 44% from Rs 8,346 to Rs 4,690, while Nelco is down 42% from Rs 1,500 to Rs 875. Oriental Hotels is down 36% to Rs 129 from its 52-week high of Rs 202.

The sell-off extends across the group with Tata Teleservices (Maharashtra) down 35%, Tata Technologies down 34%, TRF down 34%, Tata Elxsi down 32% and Automotive Stampings and Assemblies down 31%.

TCS leads the slide

TCS, the group’s largest and most valuable company, has wiped out Rs 3.86 lakh crore in market capitalization this year, accounting for about 85% of the Tata Group’s total value erosion. The stock has fallen 33% from its 52-week high of Rs 4,494 to Rs 3,028. The company last week posted September quarter results that missed Street expectations.
India’s largest IT exporter reported a 1.4% year-on-year increase in consolidated net profit to Rs 12,075 crore, while revenue rose 2.4% to Rs 65,799 crore. The subdued performance came despite a margin expansion of 70 basis points and a fresh push in artificial intelligence infrastructure, besides a second interim dividend of Rs 11 per share.

Tata Motors was also hit hard

Tata Motors is down 42.4% from its all-time high of Rs 1,179.05, trading at Rs 679.05. The stock is under continued pressure ahead of the record October 14 demerger date, which will see the passenger and commercial vehicle businesses split into two separately listed entities: Tata Motors Passenger Vehicles Ltd and Tata Motors Commercial Vehicles Ltd.

The Composite Scheme of Arrangement came into effect on October 1 and shareholders will receive one TMLCV share for every share they hold in the parent company. The stock has gone on a six-day losing streak, losing more than 5% last week.

Trent delay

Trent has cooled sharply after a long rally, down 44% from its peak. Once a market favorite for rapid store expansion and strong same-store sales, the stock is now trading at Rs 4,690 versus Rs 8,346 at its 52-week high.

Trent has cooled sharply after a long rally, down 44% from its peak. Once a market favorite due to rapid store expansion and strong same-store sales, the stock is now trading at Rs 4,690, compared to Rs 8,346 at its 52-week high.

Also read | Tata Motors demerger: Will it deliver value or more volatility for investors next week?

Unrest in the boardroom at Tata Trusts

The losses coincide with rising tensions at Tata Trusts, which owns 66% of Tata Sons. On Friday, the board met at the Taj Mahal Palace Hotel in Mumbai, away from the usual World Trade Center offices, amid disputes over governance and transparency. Chairman Noel Tata, Venu Srinivasan, Mehli Mistry and Pramit Jhaveri were present in person, while Vijay Singh and Jehangir Jehangir were present virtually.

The board approved Rs 1,100 crore in philanthropic projects, including a Rs 700 crore diabetes research center near Delhi, but avoided discussing Tata Sons matters.

The disagreements between the trustees began after Noel Tata became chairman in October 2024 and escalated after a board meeting in September where most opposed the reappointment of vice chairman Vijay Singh to the Tata Sons board. Directors who are not part of the board have complained about the limited flow of information from nominated directors, which limits informed decision-making.

There are also tensions surrounding Shapoorji Pallonji Group’s 18.37% stake in Tata Sons. The SP group has backed a public listing to unlock value and reduce debt.

A conglomerate tested

The governance turmoil makes for a challenging year for the Tata Group: the Air India crash in June killed 260 people, Jaguar Land Rover suffered a cyber attack in Britain and TCS has restructured around AI, cutting 12,000 jobs in July.

For a conglomerate that has long been considered India’s gold standard in corporate governance, the past few months represent a rare moment of vulnerability. With its flagship stocks deeply in the red and uncertainty clouding leadership, the Tata empire is finding that even age-old confidence is not immune to turbulence.

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