Big four's Indian arms outpace global counterparts in FY24 revenue growth

The Indian arms of Deloitte, PwC, EY, and KPMG outpaced their global counterparts in FY24, driven by booming demand for consulting services, with revenue set to surpass Rs 45,000 crore by FY25

The Indian divisions of the Big Four accounting firms — Deloitte, PwC, EY, and KPMG — achieved higher revenue growth in FY24 compared to their global counterparts. Fuelled by strong demand for consulting and technology services, their combined revenue is projected to exceed Rs 45,000 crore by FY25, based on current trends, according to a report by The Economic Times.

 

Industry estimates indicate that their FY24 revenues stood at approximately Rs 38,500-Rs 38,800 crore, as assessed by two professional services firms and independently verified.

 

Global growth trends  

 

Globally, the Big Four experienced moderate revenue growth in FY24 (in US dollar terms). KPMG led with a 5.4 per cent increase to $38.4 billion, followed by EY at 3.9 per cent ($51.2 billion), PwC at 3.7 per cent ($55.4 billion), and Deloitte at 3.1 per cent ($67.2 billion), the report said.

 

 

In India, the firms posted significantly higher growth rates. EY recorded a 16-17 per cent increase, reaching over Rs 13,400 crore in revenue. Deloitte grew 29 per cent to Rs 10,000 crore, including royalties from its headquarters. PwC achieved 22 per cent growth, reaching Rs 9,200 crore, while KPMG's revenue rose by 5.5-10 per cent, amounting to Rs 5,900-Rs 6,200 crore, the report mentioned.  The majority of the FY24 growth stemmed from consulting services, including management, technology, and risk consulting. These segments collectively generated over Rs 25,000 crore, with EY alone contributing over Rs 8,000 crore. Consulting revenues are projected to reach Rs 30,000-Rs 32,000 crore by end of FY25.

 

Role of global capability centres (GCCs)  

 

For EY, GCCs were a significant revenue contributor, crossing Rs 3,600 crore in FY24. Despite the collapse of Project Everest — a proposed split of EY's audit and advisory businesses — the firm saw strong performance in India, driven by mid-market clients and government services.

 

Even non-Big Four players experienced robust growth. For instance, Grant Thornton Bharat reported a 30 per cent revenue increase in FY24, with expectations of similar growth in FY25.

 

Challenges ahead

 

Despite solid performances, the Indian arms are seeing slower growth compared to previous years due to economic uncertainties and the base effect. Technology transformation projects have slowed as businesses adopt a cautious approach amid challenges related to AI integration and global economic conditions, the report said.

 

Tax services remain steady  

 

Tax services contributed over Rs 6,000 crore to the combined revenue of the Big Four in FY24. EY’s tax division, led by Sameer Gupta, accounted for Rs 1,900 crore.

 

In deal advisory services, including due diligence, corporate finance, and post-deal structuring, the firms collectively earned over Rs 2,800 crore. However, workplace pressure became a significant concern following the tragic death of a 26-year-old EY affiliate employee in September 2024, sparking debates about work-life balance.

 

GCCs to drive future growth

 

In FY25, the biggest growth driver is expected to be work related to GCCs, as firms assist clients in setting up and managing India-based operations. However, tensions over revenue and profit-sharing with partners in other geographies, particularly the US, pose challenges for the Indian arms.