Profit concentration in India Inc rises amid private sector growth

20 most profitable companies account for 65% of corporate profits

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