Even as the Indian stock market remained highly volatile in the latter half of December, shares of TCI Finance moved sharply higher, defying broader market weakness and extending a strong rally marked by consecutive upper circuit hits.
The non-banking financial company (NBFC) stock was locked in another 5% upper circuit on Wednesday, December 31, closing at ₹27.36 apiece. With this move, TCI Finance shares have now hit the upper circuit for the tenth straight trading session, according to data available on the NSE.
Trading activity remained relatively thin, a common feature in small-cap counters. Around 44,000 shares were traded on the NSE and about 4,000 shares on the BSE as of 12:50 pm.
The sharp uptrend began on December 17, when the stock surged 20% in a single session, followed by another 20% gain in the next trading day. In response to the sharp price movement, stock exchanges progressively lowered the circuit limits—from 20% to 10%, and eventually to 5%. Despite these restrictions, the stock continued its upward momentum, registering a cumulative gain of 144.3% in just ten trading sessions.
The rally drew the attention of stock exchanges, which sought clarification from the company regarding the steep rise in share price. In its response, the company stated that there was no undisclosed material information or announcement required under applicable regulatory norms.
Separately, in a filing dated December 26, TCI Finance informed the exchanges that its trading window would remain closed from the beginning of trading hours on January 1, 2026, until 48 hours after the declaration of its unaudited financial results for the quarter ended December 31, 2025. The company added that the board meeting date for the approval of the results would be announced in due course. The trading window closure applies to designated persons, their immediate relatives, and other connected individuals covered under the company’s internal code.
Such sharp price movements are not unusual in small-cap stocks, where limited liquidity and momentum-driven trading can result in rapid gains without any immediate change in fundamentals.
The December rally also capped a strong year for the stock. TCI Finance shares are up 47% in 2025, following a 370% surge in 2024. Over the past two years, the stock has delivered a cumulative return of 592%.
As per the latest available shareholding pattern for the September quarter, retail investors hold a 75.3% stake in the company, while promoters own the remaining 24.7%.
TCI Finance is an RBI-registered non-banking financial services company engaged in lending against securities and providing financing for commercial vehicles.
Disclaimer: Stock market investments are subject to market risks. This article is for informational purposes only.
