Diverse firms earn 50% more profit but inclusion gaps persist, finds study

A study of 840 listed firms found that diversity boosts profits, but most companies still lack women in key leadership roles, with over 63 per cent having no female key managerial personnel

As more businesses focus on inclusivity, a new study shows that the most diverse companies report 50 per cent higher net profit compared to those with less diversity.

 

According to HR advisory firm Marching Sheep’s Marching Sheep Inclusion Index 2025, about eight out of 10 industries analysed showed a positive link between having more women in the workforce and stronger profit after tax (PAT).

 

The annual report, carried out by Marching Sheep’s research and analytics team, looked at data from 840 listed companies across 30 sectors. These included manufacturing, steel, banking and financial services (BFSI), pharmaceuticals, FMCG, infrastructure and information technology.

Lack of inclusion at senior levels

Despite some progress, the study found that India Inc is still a long way from being truly inclusive, especially in leadership roles.

 

While there are women on boards due to legal requirements, their presence in key managerial positions remains very low. In fact, over 63.45 per cent of companies surveyed had no women at all in key managerial roles, the study found. 

 

The study also found that women make up just 22 per cent of employees in corporate India, significantly lower than the 28 per cent reported in the Periodic Urban Labour Force Survey 2023–24—a gap of six percentage points.

Inclusion must go beyond numbers

Marching Sheep’s founder and managing partner, Sonica Aron, stressed the importance of women having real influence in organisations. “We don’t just need more women in the room; we need them at the table, influencing decisions and shaping strategy,” she said.

 

She emphasised that real inclusion is not about ticking boxes but about rebalancing who holds power. “And that shift is still absent. Inclusion is about access, authority and accountability,” she added.

 

(With inputs from PTI)