Small companies struggle to stay afloat as bigger peers race ahead

While revenues of all listed companies grew 30% in last three years, the bottom quartile saw a 40% decline

The recent recovery in corporate revenues and profits has bypassed firms at the bottom of India’s corporate pyramid, and many of them are now struggling to stay afloat or going through a decline. The combined revenue of the lowest quartile (the bottom 25 per cent) of listed companies (in terms of revenues) was down 9.3 per cent year-on-year (YoY) during the July-September 2018 quarter against 23.1 per cent YoY growth in the combined net profit of all listed companies (excluding financial firms).

Cumulatively, the combined revenue of these smaller companies is down around 40 per cent in the last three years