Airtel overtakes HDFC Bank to become India’s second most valuable listed company

Bharti Airtel’s shares surge over 2% pushing its market capitalisation past HDFC Bank for a short period, as investor sentiment diverges between the telecom major’s steady momentum and the lender’s recent governance-related concerns and weaker stock performance.

Telecom major Bharti Airtel briefly surpassed HDFC Bank to become India’s second most valuable listed company on Monday, following a sharp intraday rally in its stock. The company’s market capitalisation touched around ₹11.90 lakh crore on the Bombay Stock Exchange during the session, slightly ahead of HDFC Bank’s valuation of ₹11.86 lakh crore at the same time.

The movement came after Airtel shares gained more than 2% in intraday trade, extending a strong weekly uptrend of nearly 10%. In contrast, HDFC Bank’s stock showed relatively muted movement, rising just about 1% over the same period. Investor sentiment around the banking major has remained cautious in recent sessions amid broader concerns affecting financial stocks.

Diverging stock performance between telecom and banking heavyweights

Market participants noted that HDFC Bank has faced pressure in recent months, with its stock declining significantly over the past half year. The weakness has been linked to governance-related market concerns following the resignation of part-time chairman Atanu Chakraborty, although the bank has consistently maintained that there are no structural governance issues within the institution. Despite this, the stock has fallen roughly 22% in six months.

Meanwhile, Airtel’s recent rally reflects renewed investor confidence in the telecom sector, driven by expectations of stable revenue growth, improving average revenue per user (ARPU), and strong customer retention. The company continues to benefit from a consolidating telecom market in India.

For the latest fiscal reporting period, Airtel posted a consolidated net profit of ₹7,325 crore for the March quarter of FY26, marking a 34% year-on-year decline. However, the company clarified that the previous year’s profit included a one-time tax gain of ₹2,892 crore, making year-on-year comparisons less comparable on a like-for-like basis.

In contrast, HDFC Bank reported stable financial performance for the March quarter and full fiscal year. The bank’s standalone net profit for FY26 rose 10.9% year-on-year to ₹19.12 billion. Net interest income grew 3.2% to ₹33.80 billion, while total net revenue increased 5% to ₹462.8 billion. Asset quality also remained steady, with gross non-performing assets at 1.15% of gross advances.

Reliance retains top position in market capitalisation

Despite the shift between Airtel and HDFC Bank, Reliance Industries continues to remain India’s most valuable listed company with a market capitalisation of around ₹18.09 lakh crore. The latest market movements underline ongoing sectoral rotation between banking and telecom stocks, driven by earnings trends, investor sentiment, and company-specific developments.