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ICICI Bank surpasses TCS to become India’s fourth-largest company by net profit in FY25With a net profit of ₹51,029 crore, ICICI Bank achieved an impressive 40% annualised profit growth over the past five years. In comparison, TCS's earnings grew at a slower pace of 8.5%, reaching ₹48,553 crore during the same period.By Yoosef K   May 7, 2025, 10:30:59 PM IST (Published)2 Min ReadICICI Bank—India’s second-largest private lender—has overtaken software giant Tata Consultancy Services (TCS) in net profit, crossing the ₹50,000 crore mark for the first time in FY25.

With a net profit of ₹51,029 crore, ICICI Bank achieved an impressive 40% annualised profit growth over the past five years. In comparison, TCS's earnings grew at a slower pace of 8.5%, reaching ₹48,553 crore during the same period.

The top three companies by net profit remain the State Bank of India, HDFC Bank, and Reliance Industries. However, when ranked by market capitalisation, TCS still holds the third spot (after Reliance and HDFC Bank), while telecom major Bharti Airtel takes fourth place with a valuation of ₹11.4 lakh crore, followed by ICICI Bank at fifth with ₹10.2 lakh crore.

Notably, just three years ago, TCS ranked second in net profit after Reliance Industries, ahead of major banks like HDFC Bank, SBI, and ICICI Bank. However, the IT sector’s growth has since been weighed down by global uncertainties and delays in client decision-making, contributing to TCS’s recent slowdown. Adding to the pressure, the moderate correlation between U.S. economic health and India’s IT services revenue means any softening in the U.S. economy is likely to dampen demand for Indian IT firms.

The reshuffling at the top also reflects the fading dominance of public sector undertaking (PSUs) like IOCL and Coal India, which had been among the top profit-makers in FY20–FY21.

For the March quarter of FY25, ICICI Bank delivered better-than-expected earnings despite a volatile macro environment. The strong performance from India’s second-largest private lender prompted many analysts to revise their target prices upward. At least 15 brokerages, including Jefferies, CLSA, and Nomura, raised their price targets following the results.

Nomura, which maintained its “Buy” rating on ICICI Bank, increased its target price to ₹1,690 from the earlier ₹1,575, noting that the bank’s premium valuation is likely to persist, supported by its robust earnings delivery. “ICICI Bank trades at 2.6 times its one-year forward book value per share — a 50% premium to its 10-year average — which is expected to hold due to clear visibility on 16–17% return on equity,” Nomura wrote in an investor note.

Since the start of 2025, ICICI Bank shares have gained 12%, outperforming the Nifty50’s 3.3% rise, while TCS shares have slipped 15% over the same period.Continue Reading(Edited by : Ajay Vaishnav)Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsICICI BankTCS