Corporate India’s evolution: Scale, earnings and diversification

The Nifty 500’s evolution over the past 26 years captures the structural transformation of corporate India—from a commodity- and manufacturing-heavy universe at the turn of the millennium to one increasingly shaped by financial intermediation, services and domestic demand.

Financials’ share of constituents rose from 8.0% in March 2000 to 19.8% in March 2026, while their market-cap share increased from 7.2% to 25.9%.

Index market capitalisation rose from Rs.7.3 lakh crore to Rs 372.2 lakh crore.
Based on FY26, the Profit After Tax (PAT) margin reached a record 10.9%, while the Nifty 50’s share of Nifty 500 profits fell from 87% in FY18 to 51% in FY26.

Market capitalisation growth and composition of Nifty 500

Market capitalisation of NSE-500 companies expanded at a CAGR of 16.3% between March 2000 and March 2026, rising about 51-fold despite repeated market disruptions.
It fell 33.6% during the global financial crisis and 24.2% during the COVID-19 sell-off but recovered strongly thereafter.

Expansion accelerated after March 2020, supported by earnings, domestic liquidity, wider participation and new listings.

Sectoral mix changed materially: Financials became the largest sector by market value. Consumer Discretionary increased its market-cap share from 5.0% to 11.3%, even as Consumer Staples declined from 13.2% to 6.5%.
Scale also increased across market segments: the large-cap threshold rose 122-fold to Rs 95,000 crore, while the mid-cap threshold increased 180-fold to Rs 28,700 crore by March 2026.

Corporate performance: Structural trends and business cycles

Corporate earnings grew faster than revenues over the long term.

Aggregate Nifty 500 sales increased at a CAGR of 14.8% to Rs 164.8 lakh crore, while PAT rose at 17.4% annually to ~Rs 18 lakh crore.
Between FY03 and FY26, net sales increased 21.5-fold and PAT 31-fold.

For non-financial companies, EBITDA reached Rs.23.9 lakh crore after growing at a CAGR of 15.1%.

Growth in net sales moderated in the latest decade, but profitability broadened.

Sector-wise trends: Performance, and contribution

Financials increased their share of Nifty 500 net sales from 14.6% in FY00 to 25.6% in FY26, overtaking Energy as the largest revenue contributor in FY25 and FY26.

Their share of aggregate PAT rose from 24.9% to 38.5%, supported by credit growth, financial inclusion, stronger balance sheets and improved asset quality.

Energy’s revenue share moderated to 23.1% in FY26, while Materials declined from 23.5% to 12.4%, signalling a gradual reduction in the dominance of commodity-linked sectors.

Profitability strengthened across industries: Healthcare PAT margin rose from 11.5% in FY00 to 15.6% in FY26, Utilities reached 13.5%, Industrials recovered to 8.9%.

Information Technology remained high-margin but its PAT share eased from 17.0% in FY20 to 8.5% in FY26.

Over FY22–FY26, growth became more balanced: Real Estate recorded the strongest five-year sales and PAT CAGRs, while Industrials and Financials combined double-digit revenue growth with strong earnings expansion.
Defensive sectors such as Consumer Staples and Health Care remained relatively stable across business cycles.

FY26 corporate performance: A snapshot

Nifty 500 net sales grew 8.5%, EBITDA 9.9% and PAT 15.4%, compared with 8.1%, 7.4% and 9.1% for the Nifty 50.

Excluding Financials, Nifty 500 PAT growth was stronger at 19.2%.

Aggregate Nifty 500 PAT margin rose 65 basis points to 10.9%.

Sectors	Nifty 50			Nifty 500
	Net sales (% YoY)	EBITDA (% YoY)	PAT (% YoY)	Net sales (% YoY)	EBITDA (% YoY)	PAT (% YoY)
Communication Services	22.0%	24.8%	31.1%	15.3%	18.7%	132.5%
Consumer Discretionary	9.5%	-8.7%	-13.0%	11.4%	-0.2%	-1.5%
Consumer Staples	6.6%	4.4%	7.1%	11.4%	6.5%	8.3%
Energy	5.5%	10.6%	13.9%	3.8%	26.5%	41.8%
Financials	7.4%	6.4%	6.9%	8.0%	7.0%	9.7%
Health Care	8.7%	1.6%	-2.5%	12.7%	12.3%	11.9%
Industrials	10.0%	12.5%	-11.6%	11.7%	11.3%	1.7%
Information Technology	7.1%	6.8%	9.3%	10.2%	10.8%	13.9%
Materials	12.2%
Materials	12.2%	26.3%	58.1%	12.1%	18.5%	32.8%
Real Estate	NA	NA	NA	21.6%	19.2%	21.4%
Utilities	0.1%	-9.2%	9.8%	2.8%	-1.2%	3.0%
Total	8.1%	7.4%	9.1%	8.5%	9.9%	15.4%
Total Ex-Energy	8.9%	6.9%	8.0%	10.0%	8.1%	11.4%
Total Ex-Financials	8.2%	8.5%	10.3%	8.7%	13.4%	19.2%
Total Ex-Energy Ex-Fin	9.6%	7.6%	8.9%	11.0%	9.8%	12.9%

Earnings concentration analysis

The distribution of corporate performance has broadened materially.

The Nifty 50’s share of Nifty 500 net sales rose from 42% in FY00 to 57% in FY20, before declining to 46% in FY26.

Its share of aggregate PAT fell more sharply, from 87% in FY18 to 51% in FY26.

The remaining Nifty 500 constituents have therefore become increasingly important to revenue and profit generation.

Concentration measures confirm this shift: The Herfindahl–Hirschman Index (HHI) for Nifty 500 net sales declined from 185 in FY00 to a record low of 88 in FY26.

EBITDA concentration fell from 46 to 20 and PAT concentration from 225 to 80.
Communication Services remained the most concentrated sector in FY26, but aggregate evidence points to a wider distribution of revenues and earnings across companies and sectors.

The entire report can be accessed in the latest edition of Market Pulse July 2026 (Page 28 onwards)

US, Singapore, Hong Kong, Japan Are Most Active Investors in Indian Tech Startups

Indian startup industry has established a reputation of its own in the world. The third largest startup ecosystem in the world has had an eventful journey so far and has constantly climbed the popularity charts among investors worldwide.

According to a recent CB Insights report, investors from the United States, Singapore, Hong Kong, Japan and UK have had an encouraging confidence in the Indian tech Startup Ecosystem and have been some of the most active foreign participants in India’s startup deals over the past five years. Among these, US-based investors have been the most active participants.

The report also mentioned that with over 800 equity deals being made over the five years period, the US-based investors have also emerged as the second most active grouping since the year 2012, after India or Mauritius-based investors.

While US-based investors occupy the numero uno position on the list of most active foreign investors, Singapore with five per cent of the deals, Hong Kong with three per cent, Japan with two per cent and UK with one per cent take up second, third, fourth and fifth position respectively.

The CB Insights report also revealed that not only have US-based investors invested their money in Indian Startup Ecosystem, they have invested money in some of the most popular startups in the Indian subcontinent. For example, Tiger Global has backed in numerable Indian startup superstars, such as Flipkart, Ola, and ShopClues. Another major foreign investor in the Indian startup land, is Japan-based Softbank which recently pumped in a whopper USD 1.4 billion investment in Indian e-wallet major Paytm.

Another major head turned in the Indian Investor space, is Hong Kong-based Saif Partners, which has successfully closed a large number of deals as well since the past five years. The firm has backed popular Indian startups such as Paytm and Urban Ladder

“Excluding India and Mauritius, deal participation is heavily tilted toward investors from the United States, which has seen 800 disclosed equity deals to Indian startups since 2012 — more than four times the number of deals by investors from Singapore,” read the report.

It is interesting to note that India and Mauritius-based investors make up for a whopping 61 per cent of the startup deals taking place in the South Asian country. Foreign investors have shown major confidence in the ecosystem and invested large amounts of cash. US-based Accel Partners has made its largest investment in Indian ecommerce titan Flipkart through the overseas unit rather than its Indian unit.

Foreign investments are now expected to get a major push because of the recently released government order allowing convertible notes as a fundraising option for startups from foreign individuals into early-stage firms. Last week, India’s Commerce Ministry in its consolidated FDI policy document, for the first time included startups, which can raise up to 100 per cent of funds from Foreign Venture Capital Investor (FVCI).

US, Singapore, Hong Kong, Japan Are Most Active Investors in Indian Tech Startups

Indian startup industry has established a reputation of its own in the world. The third largest startup ecosystem in the world has had an eventful journey so far and has constantly climbed the popularity charts among investors worldwide.

According to a recent CB Insights report, investors from the United States, Singapore, Hong Kong, Japan and UK have had an encouraging confidence in the Indian tech Startup Ecosystem and have been some of the most active foreign participants in India’s startup deals over the past five years. Among these, US-based investors have been the most active participants.

The report also mentioned that with over 800 equity deals being made over the five years period, the US-based investors have also emerged as the second most active grouping since the year 2012, after India or Mauritius-based investors.

While US-based investors occupy the numero uno position on the list of most active foreign investors, Singapore with five per cent of the deals, Hong Kong with three per cent, Japan with two per cent and UK with one per cent take up second, third, fourth and fifth position respectively.

The CB Insights report also revealed that not only have US-based investors invested their money in Indian Startup Ecosystem, they have invested money in some of the most popular startups in the Indian subcontinent. For example, Tiger Global has backed in numerable Indian startup superstars, such as Flipkart, Ola, and ShopClues. Another major foreign investor in the Indian startup land, is Japan-based Softbank which recently pumped in a whopper USD 1.4 billion investment in Indian e-wallet major Paytm.

Another major head turned in the Indian Investor space, is Hong Kong-based Saif Partners, which has successfully closed a large number of deals as well since the past five years. The firm has backed popular Indian startups such as Paytm and Urban Ladder

“Excluding India and Mauritius, deal participation is heavily tilted toward investors from the United States, which has seen 800 disclosed equity deals to Indian startups since 2012 — more than four times the number of deals by investors from Singapore,” read the report.

It is interesting to note that India and Mauritius-based investors make up for a whopping 61 per cent of the startup deals taking place in the South Asian country. Foreign investors have shown major confidence in the ecosystem and invested large amounts of cash. US-based Accel Partners has made its largest investment in Indian ecommerce titan Flipkart through the overseas unit rather than its Indian unit.

Foreign investments are now expected to get a major push because of the recently released government order allowing convertible notes as a fundraising option for startups from foreign individuals into early-stage firms. Last week, India’s Commerce Ministry in its consolidated FDI policy document, for the first time included startups, which can raise up to 100 per cent of funds from Foreign Venture Capital Investor (FVCI).