Economy - Reports
23-Oct-2025 10:47
India's corporate sector rebounded stronger post pandemic, says RBI study
The study highlights how India's private corporates navigated the COVID pandemic shock and emerged stronger. Based on financial data of listed non-government non-financial companies, the study underscores the sector's ability to withstand global shocks with adaptability, profitability, and strengthening of balance sheets in the post-pandemic period.
The study showed that corporate sales rebounded sharply post-pandemic, peaking at 32.5 per cent growth in 2021-22 over the contraction recorded during the pandemic period, before stabilising at 7.2 per cent in 2024-25.
Net profits rose significantly to ₹7.1 trillion in 2024-25 from ₹2.5 trillion in 2020-21. Consequently, the net profit margin improved to 10.3 per cent during 2024-25 from 7.2 per cent in 2020-21.
Corporates continued to deleverage their balance sheet supported by capitalisation of higher profit, with debt-to-equity ratios improving across firm sizes.
Interest coverage ratio for manufacturing firms improved significantly, reaching 7.7, on an average during post-COVID period, reflecting robust debt-servicing capacity.
Large firms drove profitability, while medium and small firms demonstrated greater improvement in debt servicing capacity than the large firms.
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