Top 10 Indian Companies with the Highest Profit Growth
Created on 18 Jan 2024
Wraps up in 9 Min
Read by 1.6k people
Updated on 31 Jan 2024
Do you wonder who holds the position of the top company in the nation among thousands fighting for the spot? While there are many ways to calculate the top, the commonest of them is finding the “most profitable” one. 👌
After all, companies with profits ranging in thousands of crore not only benefit shareholders or employees but also bring good gain prospects for investors like you and me.
By looking at the profit growth and net profit over the years, we will uncover the companies that indulged in cutthroat competition.
Top 10 Companies with the Largest Net Profit in India
While analysing a company, what’s the first thing you look at? If Net Profit or PAT (Profit After Tax) is not included in your screening process, you are surely missing out.
Let’s see which companies make the list of the “most profitable in India” based on PAT.
1. Reliance Industries Ltd.
Reliance Industries Ltd. (RIL) has contributed around ₹1.77 trillion to India's national exchequer in 2023. It is the largest private sector company in India and has the most profitability.
Over ₹18 lakh crore of market capitalisation and ₹73,670 crore net profit decorate RIL’s annual report for 2023, making it the top group in the nation. Just look at the financial figures for the last 3 years, and you will get the gist.
RIL’s Chairman Mukesh Ambani’s words at the Annual General Meeting 2023 are not far-fetched from Reliance's present standing in the market.
“New Reliance has been a forerunner of the emerging new India.”
Evidence of how much RIL has been evolving can be seen from its advancing profit growth over the years. Its expansion and domination of the market in varying sectors has been an impressive strategy.
Energy: Reliance New Energy Limited
Retail: Reliance Fresh, JioMart, and Trends.
Digital Services Jio mobile and broadband services
Media & Entertainment: Viacom18, Jio Studios.
2. Tata Consultancy Services Ltd.
With a net profit of ₹38,662 crore, Tata Consultancy Services Ltd. (TCS) is a giant IT firm that assists businesses with technology solutions and consulting services. TCS excels in providing:
IT services: App development, Cloud computing, Cybersecurity
Consulting Services: Advising on business strategy and technology integration
Business Solutions: Custom software and tools
With a steady revenue and operating profit trend, TCS portrays excellent potential for its clients and investors. They also employ around 6,03,305 citizens as of January 2024, becoming one of the biggest companies with a high job count.
TCS has shown a steady profit growth (10.29%) over the past 5 years. Hence, when it comes to its financials, TCS has been on top of its game not only in the IT Sector but also in others, which is proved by its position on this list. (In case you are not keeping a count, it’s 2nd! ✌️)
3. HDFC Bank Ltd.
₹12.46 lakh crore and ₹44,109 crore are the market capitalisation and net profit of HDFC Bank Ltd. for the fiscal year 2023, respectively. Apart from the profitability, HDFC Bank has also maintained a good Net Interest Margin (NIM) of 3.92% in one year.
The bank is prominently managing its Non-Performing Assets (NPA), and the average net NPA of the last 3 years signifies a highly desirable scenario of 0%. This indicates exceptional credit quality and financial health in the bank.
It also boosts financial stability, profitability, and investor confidence, as well as portrays the proper acceptance of regulatory compliance. The recent merger of HDFC Bank also became a topic of discussion in 2023, a detailed analysis of which is given here. 👈
4. ICICI Bank Ltd.
With a 3.69% NIM change for the past 3 years, ICICI Bank was founded in 1994 and is a somewhat new member of the banking sector. It is a wholly-owned subsidiary of ICICI Group.
Standalone net profit is ₹31,896 crore, whereas PAT excluding treasury gains is ₹42,473 crore for FY23.
The bank maintains an average NET NPA for the last 3 years of 0%, making it a reliable choice for citizens and investors alike.
Considering peer comparison to be a great way to know one company, read the article: HDFC Bank vs ICICI Bank: The Race to the Top is On!
5. Infosys Ltd.
Ranked in the top 3 IT services globally, Infosys Ltd. is a well-known name in the market. With a market capitalisation of over ₹6 lakh crore, Infosys is virtually debt-free and has a good ROE track record of 29.74%.
A 13.24% profit growth has been maintained by the company, with a net profit of ₹24,095 crore. Check out the financials below to get the bigger picture.
Apart from figures, here are the distinctive traits of Infosys Ltd. that make it such a successful company at present:
Global Delivery Model: Pioneered a model where projects are delivered from multiple locations, leveraging cost and talent advantages.
Focus on innovation: Invest heavily in research and development with numerous labs and partnerships.
Sustainability commitment: Aiming to be carbon-neutral by 2030 and focusing on social responsibility.
Read about the popular competition between Infosys and TCS based on the financials of both companies. Click here to get all the inside information.
6. ITC Ltd.
Just like RIL, ITC is included among India's top 3 private sector companies to contribute towards the national exchequer. ₹69,481 crore gross revenue and ₹18753.31 crore net profit has been reported for FY23 by ITC Ltd.
By looking at the profit growth chart from Ticker by Finology, you can see that ITC Ltd. has had decent growth over the years, particularly high in 2023.
The recent demerger of ITC Ltd. from its hotel chain was a long decision in the making. Now recognised as ITC Hotels, the hospitality sector is now recognised separately from ITC’s other segments (FMCG, Agri Business, Packaging, etc.)
Check out the story of ITC Demerger by clicking on this highlighted portion.
7. State Bank of India
With an impressive ₹50,232 crore PAT and a 9.19% hike in deposits (₹44,23,778 crore), FY23 has been pretty good for the State Bank of India. Apart from this, SBI has been a number one provider in many financial and non-financial curricula, namely home loan and education loan providers. It is also the first Indian bank to expand its presence on global grounds.
The bank has delivered good profit growth of 45.99% and a stable NIM of 2.79% over the past 3 years.
Read more about the financials, fundamentals, and others aspects of SBI by clicking here.
And let’s not forget that SBI is the largest bank in the nation, holding a 23% market share by assets and a 25% share of the total loan and deposit market.
8. Life Insurance Corporation of India
The company providing insurance for people’s lives secured a position for itself in the most profitable companies’ list with flying colours.
Regarding policies, LIC holds a market share of 71.76%, and for FY premiums, LIC reigns over 62.58% of the whole national market.
That’s not all. LIC is also surpassing the First Year Premium Income every year, as is clear from the infographic below:
Read an in-depth article on LIC and its investments by clicking here.
9. NTPC Ltd.
₹17,196 crore is the net profit NTPC Ltd. represented as of early January 2024. India's largest power generation company, plays a key role in meeting India's growing electricity demand.
This government owned entity has been slowly yet surely seeing a rise in its profit growth, which is about 13.39% in the 3-year average.
With a P/E ratio of 14.98 and an impressive EPS of ₹21.36 for the past year, NTPC Ltd. is a strong leader in the power sector.
The following infographic, with ₹17,121.35 crore as net profit for FY23, represents NTPC Ltd.’s financial performance.
Read about one of NTPC Ltd.’s competitors in the power sector by clicking on this link.
10. Oil & Natural Gas Corporation Ltd.
With over ₹2 lakh crore market capitalisation, Oil & Natural Gas Corporation Ltd. (ONGC) has shown a good profit growth of 46.04% for the past 3 years.
It is playing a central role in the country's energy sector, a breakdown of which is given below:
Upstream: Explores, discovers, and produces oil and natural gas from both onshore and offshore fields.
Midstream: Owns and operates pipelines, processing facilities, and other infrastructure for transporting and processing oil and gas.
Downstream: Refines crude oil into petroleum products like gasoline & diesel and manufactures petrochemicals.
Renewable energy: Invests in solar and wind power projects to diversify its energy portfolio.
₹38.8 lakh net profit and ₹1.55 crore revenue for FY23 gives an insight into the company’s low yet steady rise in the market.
The Bottom Line
And that’s where the list of the most profitable companies in India (for the year 2022-23) comes to an end. Remember, the figures discussed above represent each company’s performance for the 2022-23 duration.
If you wish to know the present financials, then make sure to check it from either the company’s annual report or Ticker.
I will be concluding the topic with one last reminder. Profits or revenue numbers might look bright, but they are not the only aspect to look at while analysing a stock. Make sure to do an in-depth analysis to gain long-term gains for your portfolio.
*Disclaimer: The stocks and companies discussed above aren't a recommendation from Insider by Finology and shall not be construed as a replacement for professional advice. Consult a professional or conduct the necessary research before making investment decisions.
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