In terms of market value depletion, the Tata group has seen its overall value dip by nearly $73 billion. Now, that is a lot of market value lost in a short span of just 9 months. Of course, there are very specific reasons and specific stocks, but many of the erstwhile value drivers of the group appear to be in trouble. For a long time, Tata group dominated India in market cap; well ahead of Reliance and Adani groups. Now, that advantage appears to be at big risk for the group. 

Clearly, the big fall was led by TCS, in the midst of falling top line growth and the recent tariff and visa headwinds. In fact, now TCS is ranked below Airtel on market cap. Tata Motors has come in for some selling due to weak demand for JLR products and also due to the recent cyberattacks on the JLR servers. JLR was the biggest driver of sales for Tata Motors. But there are other value losers too. For instance, former value leaders like Trent Ltd and Tejas Networks of the Tata group have lost anywhere between 40% to 50% from peak levels. There have been pockets of resistance like Tata Steel, but they are relatively small. 

To be fair, Tata group companies have made phenomenal progress under the leadership of N Chandrasekharan. In the last 9 years since he took over the helm of Tata Sons, the group has cut debt by over ₹30,000 crore while the value gains of the group have been substantial over the years. However, there are still big questions over what is the grand plan of the group for the future. Their biggest cash engine, TCS, is in a business that is struggling to stay in touch with reality. The group has made forays into digital and new energy, but is yet to show some tangible results or even chart a viable growth path. That is what is keeping investors cautious for now. 

This valuation crisis for the Tata group  comes at a time when Chandra is due to complete his term in 2027. The board of Tata Sons want him to continue, but Noel Tata is favoring young blood. Noel wants the role of the Tata Sons Chair split between a Chairperson, Managing Director, and Deputy CEO. This split,  combined with infusion of young blood into the top management will ensure that there is a clearer path charted for the future. For now, Tata Sons board  is backing another term for Chandra. But this massive valuation implosion may just about make it an open season for Tata Sons at the top. The group could see some really interesting times!