India, Japan cos lead corporate turnaround

Heavy sectors—once weighed down by weak demand, high leverage, and regulatory bottlenecks—have powered India’s revival.

- Mayur Bhalerao [e-mail]

While the US, Europe and China struggle with a growing pool of loss-making companies, India has emerged as a rare bright spot. For investors looking for stability in turbulent times, the profitability story unfolding in Indian equities is difficult to ignore.

According to an analysis by Yes Securities, Indian firms have one of the strongest profitability profiles globally. The share of loss-making firms in India has nearly halved, falling from 17.3% in 2020-21 to just 8.2% in 2024-25, which is a clear sign of structural turnaround. The contrast with global peers is stark.