India’s listed corporate sector has witnessed a remarkable financial recovery in the post-pandemic period, with aggregate profits nearly tripling over four years, according to the Economic Survey 2025-26 released today.
The Reserve Bank of India data reveals that combined profits of listed companies surged from approximately Rs 2.5 trillion in FY21 to Rs 7.1 trillion in FY25, reflecting the resilience and robust recovery of India’s private corporate sector.
This extraordinary growth has directly translated into substantially higher tax revenues for the government.
“The buoyancy of revenues reflects both the strong growth momentum of the domestic economy and the cumulative impact of tax policy and tax administration reforms”, the Survey noted, highlighting that corporate tax collections more than doubled during this period—rising from Rs 4.58 lakh crore in FY21 to Rs 9.80 lakh crore in FY25.
The corporate tax performance contributed to the overall strengthening of direct tax collections, which recorded an average buoyancy of close to unity during FY23-FY25, broadly aligned with nominal GDP growth.
Direct taxes now constitute 58.8 per cent of total tax revenue in FY25, up from 51.9 per cent in the pre-pandemic period.
The Survey attributes this corporate sector revival to improved operational efficiency, structural reforms, and the government’s growth-oriented fiscal policies, including the corporate tax rate cuts implemented in 2019.
These measures have enhanced India’s investment climate while simultaneously expanding the tax base.
This strong corporate performance has been instrumental in supporting the government’s fiscal consolidation efforts, enabling sustained public investment even as the fiscal deficit declined from 9.2 per cent of GDP in FY21 to 4.8 per cent in FY25.
The positive trajectory in corporate profitability signals confidence in India’s economic fundamentals and bodes well for continued private sector-led growth in the coming years.
Source from: https://swarajyamag.com/news-brief/corporate-profits-surge-nearly-3-fold-tax-collections-double-economic-survey-2026
