ANI New Delhi

Corporate profits in India reached a significant milestone in FY25, with the profit-to-GDP ratio for the Nifty-500 companies standing at 4.7%, marking a 17-year high, according to a report by Motilal Oswal.

For the listed Indian companies, this ratio was even higher at 5.1%, a 14-year high. It said, "In 2025, the corporate profit-to-GDP ratio for the Nifty-500 Universe remained at 4.7%, marking a 17-year high". The report stated that the sustained rise in the profit-to-GDP ratio was supported by strong performance in several key sectors. Telecom, which had been a negative contributor for the past seven years, turned positive in FY25.

Other sectors contributing to the rise included PSU Banks (which added 0.07% to the ratio), Healthcare (0.04%), Consumer (0.04%), Metals (0.03%), and Infrastructure (0.2%). However, some sectors saw a drop in their share of the profit-to-GDP ratio. Oil & Gas saw the biggest decline of 0.28%, followed by Automobiles (0.03%), Cement (0.02%), Utilities (0.02%), Private Banks (0.01%), and Retail (0.01%).

Despite a challenging environment, corporate profits for the Nifty-500 companies grew by 10.5% year-on-year in FY25. This double-digit growth is notable as it comes on a high base of 30.5 per cent in FY24 and represents a strong 30.3 per cent CAGR over the past five years.