Mumbai, July 3, 2025 — Corporate India has delivered a remarkable financial performance over the past five years, with profits growing nearly three times faster than the country’s GDP between FY2020 and FY2025, according to a new report by Ionic Wealth (Angel One). The findings underscore a period of robust earnings growth, margin expansion, and strategic capital deployment despite macroeconomic headwinds.
India Inc’s Profits Surge Nearly 3x Faster Than GDP Between FY20–25: Report
Mumbai, July 3, 2025 — Corporate India has delivered a remarkable financial performance over the past five years, with profits growing nearly three times faster than the country’s GDP between FY2020 and FY2025, according to a new report by Ionic Wealth (Angel One). The findings underscore a period of robust earnings growth, margin expansion, and strategic capital deployment despite macroeconomic headwinds.
Key Highlights from the Report
- Profit-to-GDP Ratio: Corporate profits as a percentage of GDP surged from 1.9% in FY20 to 6.9% in FY25, reflecting a significant improvement in earnings performance.
- Revenue and Profit Growth: Nifty 500 companies recorded 6.8% YoY revenue growth, while EBITDA rose 10.4% and profit after tax (PAT) increased 5.6% in FY25.
- Mid- and Small-Cap Outperformance: Mid-cap and small-cap firms led the earnings momentum, with PAT growth of 22% and 17%, respectively, compared to just 3% for large-cap companies.
Sectoral Trends
- BFSI Dominance: The banking, financial services, and insurance (BFSI) sector emerged as the primary driver of profitability, with its share of total profits nearly doubling since FY20 to reach 39% in FY25.
- Consumer Durables and Healthcare: These sectors posted standout PAT growth of 57% and 36%, respectively, followed by capital goods at 26%.
- Shifting Earnings Mix: While BFSI and automobiles gained share, sectors like technology, oil & gas, and pharmaceuticals saw a decline in their contribution to overall profits.
Drivers of Profit Growth
The report attributes the surge in profitability to:
- GST-led formalisation of the economy
- Lower debt servicing costs
- Improved operating leverage and margin expansion
- Easing inflation and better input cost management across sectors such as cement, chemicals, metals, and auto.
Capital Expenditure Outlook
India Inc is poised for a major investment cycle, with plans to nearly double capital expenditure to ₹72.25 lakh crore during FY26–30. Notably:
- 80% of this capex will be self-funded and focused on upgrading operations and generating new income.
- Key sectors driving this wave include power, green energy, telecom, auto, and cement.
