Profit concentration in India Inc rises amid private sector growth

20 most profitable companies account for 65% of corporate profits

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The 20 most profitable listed firms reported a combined net profit of Rs 2.49 trillion in the first half of FY22, up 78 per cent from around Rs 1.4 trillion in the first half of FY21

Big private sector companies have cornered a large chunk of the corporate profit pie in the last few years as small and public sector firms struggle with poor profitability. This has resulted in a steady rise in profit concentration. India’s 20 most profitable companies accounted for nearly 65 per cent of all corporate profits in the listed space in the first half of 2021-22 (FY22), as against a 62.4 per cent share in FY21 and 52 per cent a decade ago in FY12. However, this was lower than the record-high profit concentration of 72 per cent in FY20. This is attributed to a surge ...