Mumbai, July 3
India Inc has shown remarkable financial strength over the last five years, with corporate profits growing nearly three times faster than the country's GDP between FY20 and FY25, a new report said on Thursday.
The profit-to-GDP ratio has risen significantly to 6.9 per cent -- reflecting strong earnings performance despite economic challenges, according to the data compiled by Ionic Wealth (Angel One).
The report, titled ‘India Inc. FY25: Decoding Earnings Trends & Path Ahead’, highlights that FY25 was a resilient year for Indian companies.
Revenue of Nifty 500 firms grew by 6.8 per cent year-on-year (YoY), while EBITDA rose by 10.4 per cent and profit after tax (PAT) increased by 5.6 per cent.
Notably, mid-cap and small-cap companies outshined large-cap firms in terms of profit growth, recording 22 per cent and 17 per cent PAT growth respectively, compared to just 3 per cent for large caps.
Sector-wise, BFSI (banking, financial services and insurance) emerged as a major driver of profitability, with its share of total profits nearly doubling since the pandemic.
Auto, capital goods, and consumer durables also posted healthy earnings growth.
Consumer durables led with a massive 57 per cent PAT growth in FY25, followed by healthcare at 36 per cent and capital goods at 26 per cent, as per the report.