Two leading Tata Group firms -- Trent Ltd and Tata Consultancy Services (TCS) -- are among the worst performers in the NSE Nifty50 index so far in 2025.
Trent's shares have slumped over 25% year-to-date, making it the biggest laggard in the benchmark index. TCS follows closely, with its stock declining more than 21% this year. This sharp underperformance contrasts with the Nifty50's 6% gain in the same period.
Investors are concerned about Trent's ability to sustain the 35% CAGR revenue growth it achieved over the past five years. Meanwhile, TCS faces renewed pressure after reporting a lacklustre Q1FY26 result.
Shares of Trent hit a 52-week high of Rs 8,345 apiece in October 2024 and are now trading at Rs 5,313. The scrip fell as much as 11% on July 4 after the company, in its annual general meeting, highlighted that growth in first quarter of FY2026 will be around 20%, which is significantly below the five-year CAGR of 35%.
Following this, brokerage firm Nuvama reduced its FY2026 and FY2027 revenue growth estimates on Trent by 5% and 6% and its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) estimates by 9% and 12% respectively over the same time frame. Nuvama has also downgraded Trent to "hold" from "buy" and cut its price target to Rs 5,884 from Rs 6,627 earlier.
However, a few other global brokerages remain upbeat on Trent. Macquarie has maintained its 'Outperform' rating on the stock and has a target price of Rs 7,200.
Meanwhile, TCS shares fell 3.5% on Friday after the IT giant reported a drop in Q1FY26 revenue, especially a 3.3% sequential drop in constant currency revenue. Following this, brokerage firms such as Nomura and UBS trimmed their price targets for TCS.
Shares of India's third most valuable company have been under pressure since the start of 2025 amid fears of a potential US recession triggered by President Donald Trump's trade tariff policies.
Since IT firms derive a significant portion of their revenue from the US, worries over a slowdown in tech spending have further dampened investor sentiment. As a result, shares of Wipro, Infosys, and HCL Tech have declined 15-17% so far this year.