Net profits of Indian corporates improve margins to ~10.3% in FY25, supported by balance-sheet strength

According to a report from the Reserve Bank of India, net profit margins of Indian companies improved to around 10.3% in FY25, up from 7.2% in FY21. The data also underlines that debt‐to‐equity ratios have improved and debt servicing capacity (interest coverage) in the manufacturing sector reached 7.7x. The results reflect the recovery in demand, cost discipline, and stronger capital structure across firms. Analysts caution that export weakness and commodity inflation may hinder further margin expansion.