10 Most Profitable Companies in India

The 10 most profitable companies in India are not as profitable as their global counterparts, but with a home market of over a billion people, their growth prospects are certainly bright.

India has one of the largest and fastest-growing economies in the world. The rapidly developing nation has the potential to become the third-largest economy in the world within the next ten years, due to its young population, increasing participation in global trade, and healthy savings and investment rates. In addition, the combined net income of the 10 companies on this list stands at $8.68 billion, no doubt adding significantly to India’s economic growth. The top 10 companies in India in terms of profit span multiple industries, including fast moving consumer goods, energy, oil, automobiles, banking, finance, and more. This even distribution of classifications for the top performing companies in India bodes well for the country’s prospects, as this shows multiple fronts for significant income, especially compared with countries such as China and the U.S, in which the majority of the most profitable companies are financial institutions.

India is constantly being compared with China, as the two countries each have more than a billion people (the two countries are home to about 30% of the world’s population), have each registered robust economic growth over the past decade, and are classified as newly industrialized countries. However, the two countries play by different rules. While both countries have large state-owned enterprises, communist China is more hands-on with its economic interventions, while India, deemed as the world’s largest democracy, is more inclined to let natural market forces do the work. Couple laissez faire policies with mounting red tape and you get a less favorable business situation in India. China has about 32 companies that pull in net income of at least $1 billion, compared to only three for India. Nevertheless, as India’s favorable business conditions position it for better growth, the billion-dollar club of Indian companies should only grow.

As for which of these corporations — Coal India Ltd (NSE:COALINDIA), Dabur India Ltd (NSE:DABUR), GAIL (India) Limited (NSE:GAIL), Indiabulls Housing Finance Ltd (NSE:IBULHSGFIN), Indian Oil Corporation Limited (NSE:IOC), Maruti Suzuki India Ltd (NSE:MARUTI), Oil India Limited (NSE:OIL), Power Grid Corporation of India Limited (NSE:POWERGRID), State Bank of India (NSE:SBIN), and Union Bank of India (NSE:UNIONBANK) — ended up as the most profitable, we rank the companies on this list of the 10 most profitable companies in India in order of their net income for their 2016 fiscal years.

For further profit-related reading, check out the 10 Most Profitable Companies In Europe.

10. Dabur India Ltd (NSE:DABUR)

Total revenue for fiscal year 2016: $1.27 billion

Net income for fiscal year 2016: $189 million

Dabur India Ltd (NSE:DABUR) earns its income from selling health supplements and personal care products, as well as food items.

9. Union Bank of India (NSE:UNIONBANK)

Total revenue for fiscal year 2016: $1.28 billion

Net income for fiscal year 2016: $204.7 million

With 4,214 branches across the nation, Union Bank of India (NSE:UNIONBANK) is one of the largest financial institutions in the country. The Indian government owns about 63% of the bank.

8. Oil India Limited (NSE:OIL)

Total revenue for fiscal year 2016: $1.49 billion

Net income for fiscal year 2016: $302.4 million

The state-owned Oil India Limited (NSE:OIL) primarily engages in the exploration and production of crude oil and natural gas.

7. GAIL (India) Limited (NSE:GAIL)

Total revenue for fiscal year 2016: $8.28 billion

Net income for fiscal year 2016: $339.7 million

GAIL (India) Limited (NSE:GAIL) stands for Gas Authority of India Limited. The public sector company is engaged in the energy and petrochemicals industries.

6. Indiabulls Housing Finance Ltd (NSE:IBULHSGFIN)

Total revenue for fiscal year 2016: $650.9 million

Net income for fiscal year 2016: $353.8 million

Housing finance, real estate, and wealth management are the three main business segments of Indiabulls Housing Finance Ltd (NSE:IBULHSGFIN).

5. Maruti Suzuki India Ltd (NSE:MARUTI)

Total revenue for fiscal year 2016: $8.71 billion

Net income for fiscal year 2016: $709.0 million

It’s hard not to be a top company in India when you have 51% of the passenger car market in the country, as Maruti Suzuki India Ltd (NSE:MARUTI) does.

4. Power Grid Corporation of India Limited (NSE:POWERGRID)

Total revenue for fiscal year 2016: $3.22 billion

Net income for fiscal year 2016: $907.5 million

State-owned electric utilities company Power Grid Corporation of India Limited (NSE:POWERGRID) transmits about 50% of the total power generated in India.

The next three companies on this list of the 10 most profitable companies in India each earned net income of more than $1 billion during their latest fiscal year.

3. Indian Oil Corporation Limited (NSE:IOC)

Total revenue for fiscal year 2016: $53.70 billion

Net income for fiscal year 2016: $1.69 billion

The Indian Oil Corporation Limited (NSE:IOC) ranks 3rd in our list of most profitable companies in India. It leads all Indian companies in the Fortune Global 500 list and is the largest company in the country in terms of revenue.

2. State Bank of India (NSE:SBIN)

Total revenue for fiscal year 2016: $13.87 billion

Net income for fiscal year 2016: $1.84 billion

State Bank of India (NSE:SBIN) ranks second in our list of most profitable companies in India. It is the market leader with a 20% market share in deposits and loans.

1. Coal India Ltd (NSE:COALINDIA)

Total revenue for fiscal year 2016: $11.39 billion

Net income for fiscal year 2016: $2.15 billion

The largest coal producing company in the world, Coal India Ltd (NSE:COALINDIA) is still notching high profit even in the midst of a sharply declining coal industry, putting the company on the top position on this list of the 10 most profitable companies in India.

Disclosure: None