Mumbai, 3 July (IANS). Indian companies have shown great financial strength in the last five years, with corporate profits between the financial year 2020 and FY 25, have increased almost three times faster than the country’s GDP.
According to data compiled by ionic wealth (Angel Forest), the profit-to-GDP ratio has increased a spectacular increase and has increased to 6.9 percent, which reflects strong income performance despite economic challenges.
‘India ink. FY 25: The report titled Decoding Ernings Trends and Path Ahed ‘has highlighted that FY 2025 was a strong year for Indian companies.
Revenue of Nifty 500 firms increased by 6.8 percent on an annual basis, while EBITDA increased by 10.4 percent and Profit After Tax (PAT) increased by 5.6 percent.
Mid-cap and small-cap companies surpassed large-cap firms in terms of profit growth, who recorded 22 percent and 17 percent PAT growth respectively, while it was only 3 percent for large cap.
Sector Wise, BFSI emerged as a prominent driver of profitability, its share in the total profit since Corona epidemic has almost doubled.
Auto, Capital Goods and Consumer Durelus also recorded good income growth.
According to the report, Consumer Durelus led the 57 percent PAT in FY 2025 with a huge PAT increase, followed by 36 percent and capital goods at 26 percent.
Companies also benefited from improving margins in sectors such as cement, chemical, metal and auto, which helped in inflation reduction and better input cost management.
The report also pointed to a great bounce in capital expenditure schemes. The goal of the Indian industry is to almost double its capital expenditure to Rs 72.25 lakh crore during FY 26-30.
About 80 percent of this capital expenditure focuses on upgrading existing operations and generating new income, leading the next wave of sector investment such as electricity, green energy, telecom, auto and cement.
Looking forward to the financial year 2026, the approach to the region vary. Banks and NBFCs can see debt growth stabilizing as the second half of the year is expected to reduce interest rates.
There is a possibility of improvement in IT sector due to cost-noise deals and demand from BFSI customers.
The report states that pharma development will get detailed support in chronic therapy and hospital network, while the FMCG sector is expected to improve rural demand and benefit from good monsoon.
-IANS
SKT/