Which Are the Highest Profit-Making Company Stocks in India?

Top Profitable Companies in India: An Overview

Profit is the primary objective for any company to enter into the business. Often we see various parameters to invest in a particular stock such as market capitalization, valuation, and financial ratios but forget to check the profit earned by the company which is the foremost important factor to consider while investing in any company. A profitable company will only be able to survive in the competition, in the long run, expand its business, fulfill its debt obligation and also pay its dividends in a timely manner. 

Five top most profitable companies in India 2022

Reliance Industries Limited (RIL)

• Mukesh Ambani led Reliance Industries Limited is the highest profit-making company in India having a diversified portfolio in multiple sectors such as oil, gas, retail, banking, digital and others.  The company had a consolidated net profit of ₹ 60,705 crores in FY22 with a sharp growth of around 23% from ₹ 49,128 crores in FY21.
   
• In 2022, it became the first Indian company to cross $100 billion in terms of revenue. As on 24th November 2022, RIL has a market capitalization of ₹ 16,80,186 crores. Its stock price has risen by 13% from the last year.

Oil and Natural Gas Corporation Limited (ONGC)

• ONGC is the largest state-owned company in the business of oil and gas exploration and production established by the Indian Government on August 14, 1956. Currently, it is producing about 70% of India’s crude oil which is about 57% of the country’s total demand and about 84% of its natural gas. 
• It is one of the top profit companies in India. In the financial year ended in March 2022, ONGC earned a consolidated net profit of ₹ 45,522 crores, witnessing a sharp growth of 179% from ₹ 16,304.40 in FY21. The company’s consolidated revenue in FY22 rose to ₹ 539,199 crores from ₹ 369,796 crores in FY21.
• As of 24th November 2022, its market capitalization stands at ₹ 1,71,721 crores. Its stock has gained over 5% in the last year. 
• The company’s crude oil production in the financial year 2022 stood at 19.5 million tonnes with an expectation to rise to 19.8 million tonnes in FY23. Its gas production in FY 2021-22 was at 20.9 billion cubic meters and is expected to rise to 21.5 billion cubic meters in 2022-2023. 

Tata Steel Limited

• Tata Steel Limited, a part of the Tata Group is an Indian multinational steel company. It is the second-largest steel company in India after SAIL in terms of domestic production with an annual capacity of 13 million tonnes of steel and other related products. Tata Steel has businesses across 26 countries in the world having major operations in India, Netherlands and England.
• Tata Steel had a consolidated net profit of ₹ 40,153 crores in the financial year that ended on March 2022, becoming one of the top 10 companies in India by profit. The net profit in FY22 had seen a growth of 436% from ₹ 7,490.22 crores earned in FY21. The company’s net sales increased to ₹ 2,42,326 crores in FY22 from ₹ 1,54,719 crores in FY21. As of 24th November 2022, its market capitalization stands at ₹ 1,28,810 crores. 

Tata Consultancy Services (TCS) Limited

• Tata Consultancy Services, a subsidiary of Tata Group is one of the top IT companies in India and the world. It provides IT and consultancy services in 149 locations across 46 countries.
• In the year 2018, it became the first Indian IT company to have a market capitalization of $100 billion. TCS is also frequently ranked in the high profit-making companies India list every year. As on 24th November 2022, its market capitalization stands at ₹ 12,10,524 crores. 
• TCS had a consolidated net profit of ₹ 38,327 crores in the financial year 2022. The net profit in FY22 had seen a growth of around 18% from ₹ 32,430 crores earned in FY21. The company’s revenues increased to ₹ 191,754 crores in FY22 from ₹ 1,64,177 crores in FY21 with a growth of around 17%.

HDFC Bank Limited

• HDFC Bank is an Indian banking and financial services company, headquartered in Mumbai and is the largest private-sector lender. It is the fifth company on the list of top profit-making companies in India. As on 24th November 2022, HDFC Bank’s market capitalization stands at ₹ 8,91,461 crores. 
• HDFC Bank had a net profit of ₹ 38,052 crores in the financial year ended March 2022, with a growth of around 20% from a net profit of ₹ 31,883 in FY21. Its total revenue during the same year increased to ₹ 167,695 crores from ₹ 155,885 crores with a growth of 7.5%.

The next 5 companies on the top 10 profitable companies in India 2022 include the country’s largest bank State Bank of India (SBI) with an annual net profit of ₹ 35,374 crores, private lender ICICI Bank with a net profit of ₹ 25,110 crores, state-run Indian Oil Corporation with a net profit of ₹ 25,102 crores, largest mortgage lender Housing Development Finance Corporation (HDFC) with a net profit of ₹ 22,595 crores and the second-largest software services provider Infosys with an annual profit of ₹ 22,110 crores in FY22.

(All of the above data is as of 24th November 2022)

Disclaimer: The securities quoted are exemplary and not recommendatory. Past performance is not indicative of future returns

Highest Profit-Making Companies in India

Here is the list of top profitable companies in India for the financial year 2021-22. Please note that all the net profits and revenue figures are taken from the consolidated financial statements. 

(Data as of 24th November 2022)

Disclaimer: The securities quoted are exemplary and not recommendatory. Past performance is not indicative of future returns

Conclusion

The highest profit-making company in India 2022 is Reliance Industries followed by ONGC. As per the report, the top 20 profitable companies in India generate 70% of the country's profits and therefore it is a great opportunity to invest in them because they are dominating the Indian share market. As “Money attracts money”, they also have the edge of being the companies with the highest profit margins in India because they can easily invest in expansion activities with their profits only at a lower cost.

This is not an investment advisory. The blog is for information purposes only. Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance, and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs. The performance and returns of any investment portfolio can neither be predicted nor guaranteed.