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.