Mumbai: Bharti Airtel has overtaken HDFC Bank to become India’s second most valuable listed company by market capitalisation, reflecting growing investor confidence in the telecom sector.

Shares of Bharti Airtel surged more than 2 per cent during trading on the BSE, pushing the company’s valuation close to Rs 11.8 lakh crore. In contrast, HDFC Bank shares declined over 2 per cent, bringing its market capitalisation down to around Rs 11.7 lakh crore.

Despite the reshuffle, Reliance Industries continues to remain India’s most valuable listed company with a market capitalisation of nearly Rs 18 lakh crore.

Telecom stocks gain favour on Dalal Street

The latest shift highlights changing investor preferences on Dalal Street, where telecom companies are increasingly attracting stronger market interest compared to traditional banking stocks.

Over the past five years, Bharti Airtel has delivered returns of nearly 270 per cent, significantly outperforming HDFC Bank, whose shares have gained around 49 per cent during the same period.

Market analysts believe investors are favouring telecom firms due to stronger earnings visibility, rising digital consumption and improved cash flow generation.

The growing adoption of mobile data, broadband services, enterprise connectivity and digital infrastructure has strengthened the long-term outlook for telecom companies.

Challenges weigh on HDFC Bank

While Airtel’s valuation has continued to rise, HDFC Bank has faced several operational and market-related challenges in recent years.

Analysts point to post-merger integration pressures, increasing competition from public sector banks and governance-related concerns following leadership changes as factors affecting investor sentiment.

The banking sector has also been facing pressure from foreign portfolio investor selling amid global market uncertainty.

Brokerages remain optimistic on Airtel

Several global brokerage firms continue to maintain a positive outlook on Bharti Airtel.

BofA Securities has assigned a target price of Rs 2,320 for the stock, citing market share gains, growth in non-mobile businesses and opportunities in data centre operations.

JP Morgan projected a target price of Rs 2,250 by March 2027 and identified deleveraging, dividend growth and expansion into adjacent businesses as key growth drivers.

Meanwhile, Goldman Sachs retained its ‘Buy’ recommendation on the stock despite slightly reducing its target price due to weaker performance in tower and DTH segments.

Strong quarterly earnings boost investor confidence

Investor confidence has also been supported by Airtel’s strong fourth-quarter FY26 financial performance.

According to analysts, the company’s consolidated revenue and EBITDA exceeded market expectations.

Airtel Africa emerged as a major contributor to growth, reporting a 41 per cent year-on-year increase in revenues.

The company’s home broadband business in India also recorded strong momentum with notable quarter-on-quarter growth.

In addition, Airtel announced a dividend of Rs 24 per share for FY26, higher than the Rs 16 declared in the previous financial year, signalling confidence in future cash flow generation.

Share swap agreement announced

Bharti Airtel also unveiled a share swap agreement to acquire ICIL’s 16.31 per cent stake in Airtel Africa.

Under the arrangement, the telecom company will issue nearly 146.7 million new shares to ICIL, leading to an estimated dilution of around 2.4 per cent.

Industry experts believe the move could further strengthen Airtel’s international business operations and long-term expansion strategy.

India’s top companies by market value

Apart from Reliance Industries, Bharti Airtel and HDFC Bank, India’s top listed companies by market capitalisation currently include:

  • ICICI Bank
  • State Bank of India
  • Tata Consultancy Services
  • Bajaj Finance
  • Larsen & Toubro
  • Hindustan Unilever
  • Life Insurance Corporation of India

Conclusion

Bharti Airtel’s rise above HDFC Bank in market capitalisation marks a significant moment in India’s corporate landscape, reflecting the growing dominance of telecom and digital infrastructure businesses. Strong earnings, investor optimism and expanding digital opportunities continue to strengthen Airtel’s position in the market.