A record year for initial public offerings (IPOs) and market polarisation, with investors preferring the top 250 companies, were cited as reasons for the jump in the trillion club.
“The bigger companies have grown bigger, and smaller ones have been ignored, because of which small and midcaps have underperformed. Mutual funds had abundant liquidity thanks to systematic investment plans, and they invested in the top 250-300 companies by market capitalisation,” said Ambareesh Baliga, an independent equity analyst.
Companies that entered the ₹1 trillion club in 2025 include Tata Capital, ICICI AMC, and LG Electronics. All three were listed last year.
BSE, Hindalco Industries, Hindustan Zinc, and Tata Consumer are other prominent names that either entered or re-entered the trillion club.
“It is unusual for three newly listed firms to get into the trillion club. But the boom in the IPO market over the last two years is also unprecedented and spread across many themes. The robustness attracted even multinational and large industrial houses to bring their issues. Investors lapped up ICICI Prudential Asset Management Company as the capital markets theme played out,” said G Chokkalingam, founder of Equinomics.
The sectoral diversity of the trillion club expanded from 36 sectors in 2024 to 40 in 2025. The number of firms in the aerospace and defence sector rose by two, while the auto sector added three companies. Banks, capital goods, finance and refineries were other sectors that saw an increase in companies with a trillion-rupee market capitalisation.
“The banking sector is doing well on the back of record-low non-performing assets, and credit growth has remained in double digits for a third year in a row. The auto sector is doing well because of goods and services tax rationalisation,” said Chokkalingam.
Information technology (IT), pharmaceuticals, and power generation were among the sectors that saw a reduction in the number of constituents.
“The IT sector’s revenue growth is 2-4 per cent in dollar terms. The steel industry is the most affected by the tariff war because China is the world’s leading steel producer, so the tariffs will impact the steel industry,” he added.
The finance sector has the highest number of companies in the trillion club, followed by banks and automobiles. Reliance Industries, with a market capitalisation of ₹21 trillion, remains the most valuable company, followed by HDFC Bank and Bharti Airtel. Reliance Industries’ and HDFC Bank market capitalisation rose while TCS, Infosys, ITC, Hindustan Unilever, Sun Pharma, and NTPC were among the firms that saw a decline in market capitalisation.
Going forward, the number of trillion-club companies is expected to plateau as investor attention shifts towards small and midcaps this year.
“There could be value buying in small and midcaps because of valuation moderation. Some firms in this segment have fallen 30-70 per cent,” said Baliga.
 "market capitalisation, mcap")