India Inc Backs Big 6 Audit Firms for FY25 Amid Industry Consolidation
India Inc continues to show strong preference for the Big 6 audit firms—Deloitte, EY, KPMG, PwC, Grant Thornton, and BDO—as they dominate audit assignments for FY25, reflecting a clear trend toward market consolidation and audit concentration.
- Out of 483 companies in the Nifty-500 index, 326 firms chose these top auditors, maintaining a 67% share—the same as FY24.
- This sustained preference underscores the growing trust and reliability associated with larger audit firms.
Dominance in NSE-Listed Universe
Among all NSE-listed companies (main board), the Big 6 handled 694 audit assignments out of 2,069, covering 34% of total companies for which data was available in FY25.
- This represents a modest increase from 32% in FY24, indicating gradual consolidation across broader capital markets.
- The rise also suggests increasing regulatory scrutiny and preference for high-compliance audit firms, especially among larger corporates.
Audit Market Sees Ongoing Consolidation
The average number of companies audited per firm rose to 2.4 in FY25, compared to 2.27 in FY24 and 1.87 in FY14, reflecting increased centralisation of audit mandates.
- There were 22 firms that audited 10 or more listed companies, suggesting a shift toward mid-sized firms gaining scale.
- On the contrary, a significant 608 audit firms handled only one listed company, showing a wide disparity in audit firm scale and client base.
EY Leads in Audit Count, BDO Breaks into Top 5
The EY Group emerged as the leading audit firm in terms of assignments, covering 176 companies in FY25, followed by KPMG Group (137) and Deloitte Group (128).
- BDO Group made a notable entry into the top 5, overtaking the Price Waterhouse Group, reflecting a shift in client preferences and BDO’s expanding footprint.
- These firms are now not just numerically dominant, but also influential in auditing high market-cap firms, securing their position in strategic financial oversight.
Audit Coverage by Market Capitalisation
Firms like Deloitte, EY, and KPMG not only secured the most assignments but also collectively audited companies representing 47% of total market capitalisation of all NSE-listed companies.
- Their penetration in large-cap firms reinforces the perception of trust, capability, and global alignment in audit services.
- Such dominance makes them pivotal players in maintaining market transparency and investor confidence.
Joint Audits Continue Among Large Institutions
In FY25, the number of companies opting for joint auditors rose to 157, marginally up from 154 in FY24.
- Joint audits are mandatory for PSUs, insurance companies, and financial institutions with assets over ₹15,000 crore, as per regulatory norms.
- These arrangements ensure audit quality and shared accountability, particularly for systemically important institutions.
The data highlights how India’s audit landscape is consolidating around a few dominant players, even as smaller firms remain active in niche segments.
