India Inc's Q2FY25 numbers show growing dependence on BFSI sector

Analysts attribute BFSI companies' rising share in corporate revenues and profits to this sector's consistent double-digit growth, unlike other sectors of the economy

Corporate India now seems more dependent than earlier on a good showing by the banking, financial services and insurance (BFSI) sector to prop up overall earnings, with the sector’s share in India Inc profits reaching 38.2 per cent in the July-September 2024 quarter (Q2FY25), the highest since 2012. 

This was also significantly higher than the sector’s 23.6 per cent average contribution to overall corporate profits in the past 10 years, excluding the Covid-19 period, when the BFSI share rose sharply amid a shutdown of most non-financial economic activities. For context, the sector had accounted for 57.2 per cent of all