When reading FDI Company Profits Rise Despite Slower Sales Growth Due, the important part is to keep the core facts intact while presenting the context in a clearer way for readers.
What This Update Means
Readers should treat this as a tax and compliance update, not as personal advice.
Key Reader Takeaways
- RBI data shows profit after tax increased despite moderation in sales growth.
- Lower interest expenses and higher non-operating income supported profitability….
- The Reserve Bank released data on the financial performance of 3,100 non-government non-financial FDI companies in India for 2024–25, based on audited accounts prepared under Ind-AS.
- These companies accounted for ₹25,96,425 crore in paid-up capital, representing 51.9% of total FDI company capital in the annual census.
LAMORC DIGITAL Context
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The Reserve Bank released data on the financial performance of 3,100 non-government non-financial FDI companies in India for 2024–25, based on audited accounts prepared under Ind-AS. These companies accounted for ₹25,96,425 crore in paid-up capital, representing 51.9% of total FDI company capital in the annual census. Investments were primarily from Singapore, USA, and Mauritius, with major presence in manufacturing and services, particularly information and communication. Net sales growth moderated to 8.7%, with services improving slightly and manufacturing slowing. Operating expenses rose to 9.1%, driven by manufacturing costs and employee remuneration. Operating profit growth declined to 10.7%, though profit after tax increased by 22.2% due to higher non-operating income and lower interest expenses. Leverage stood at 25.0%, while interest coverage improved to 5.8. External funding share declined, and capital formation increased, indicating improved investment activity and financial stability.
Reserve Bank of India
Finances of Foreign Direct Investment Companies, 2024-25
Today, the Reserve Bank released the data 1 relating to financial performance of non-government non-financial (NGNF) foreign direct investment (FDI) companies in India during 2024-25 ( https://data.rbi.org.in/#/dbie/reports/Statistics/Corporate%20Sector/Finances%20of% 20FDI%20Companies) based on audited annual accounts of 3,100 companies, which reported in the Indian Accounting Standards (Ind-AS) format for three accounting years from 2022-23 to 2024-25. Their economic sector classification is based on their principal business activity, as reported in MGT-7 form of the Ministry of Corporate Affairs, Government of India, which is the primary source of these data.
The paid-up capital (PUC) of these companies amounted to 25,96,425 crore, which accounted for 51.9 per cent of the total PUC of FDI companies that had reported in the 2024-25 round of the Reserve Bank’s annual census of foreign liabilities and assets of Indian direct investment companies.
Sources and Uses of Fund
Explanatory notes to the statements are given in the Annex.
Press Release: 2026-2027/123
(Brij Raj) Chief General Manager
1 The Previous data release in the series was published on March 11, 2025, based on finances of 2,418 FDI companies for the years 2021-22 to 2023-24.
2 ICR (ratio of earnings before interest and tax to interest expenses) is a measure of debt servicing capacity of a company. The minimum value for a variable ICR is 1.
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Readers should treat this as a tax and compliance update, not as personal advice.
This article is for general information based on available source information. It should not be considered legal, tax, investment, or financial advice.