10 Indian companies with highest debt; list will surprise you

With a consolidated debt of Rs 5.25 lakh crore, the highest debt by any listed company in India belongs to Power Finance Corporation (PFC). PFC's debt has soared 180 per cent in the last four years. In the last two fiscals, its debt has more than doubled. Incorporated on July 16th, 1986, PFC is a schedule-A Navratna CPSE, and is a leading Non-Banking Financial Corporation in India. It is under the administrative control of Ministry of Power. PFC is the 8th highest profit making CPSE as per the Department of Public Enterprises Survey for FY18.

The oil to telecom giant, Reliance Industries has the second highest debt of Rs 2.78 lakh crore, on a consolidated basis. Mukesh Ambani-led conglomerate, in its 42nd AGM, announced that it targets to become a "zero debt" company by the end of fiscal 2021. Reliance's debt has soared by 78.7% since FY15.

Housing Development Finance Corporation (HDFC) stands at the third place on the list with a combined debt of Rs 2.79 lakh crore. HDFC is a financial services company having presence across multiple domains such as banking, insurance, asset management, realty and many more. HDFC was founded in 1977 and was the first mortgage company in India. In the last four years HDFC's debt has increased by 28.7 per cent from Rs 2.17 lakh crore in FY15 to Rs 2.79 lakh crore till the end of FY19. HDFC had consolidated revenue of Rs 96,195 crore and a net profit of Rs 10,191 crore in FY19.

Fourth on the list is a public sector enterprise (PSU), REC limited. REC which was earlier called Rural Electrification Corporation is an infrastructure finance company catering to India's power sector. Total 52.63 per cent of the stake in REC belongs to Power Finance Corporation (PFC). Since FY15, REC's debt has soared by 61.8 per cent from Rs 1.5 lakh crore to Rs 2.44 lakh crore in FY19.

LIC Housing Finance (LICHF) has the fifth highest debt, Rs 1.68 lakh crore, for any listed Indian entity. Total 40 per cent of the ownership of the company lies with the insurance behemoth Life Insurance Corporation. LICHF was incorporated in the year 1989 and went public in the year 1994.  In the last four years, LICHF's debt has increased by 75 per cent from Rs 96,532 crore to Rs 1.68 lakh crore at the end of financial year 2019. The company in FY19 had revenue of Rs 17,396 crore and net profit of Rs 2,434 crore.

NTPC which was formerly known as National Thermal Power Corporation was incorporated on 7 November 1975. NTPC is a dominant power major with presence in the entire value chain of the power generation business in India. NTPC has the sixth highest debt obligation at Rs 1.62 lakh crore. In the last four years, the debt of NTPC has increased by 56 per cent from Rs 1.03 lakh crore in FY15 to Rs 1.62 lakh crore in FY19. The revenues at the end of FY19 stood at Rs 96,757 crore while the net profit was Rs 11,961 crore.

Seventh on the list is another government company, Power Grid Corporation, with a debt of Rs 1.46 lakh crore at the end of FY19.  Power Grid is a Maharatna CPSE which was established in 1989. The government of India owns 54.96 per cent stake in Power Grid Corp. in the last four years its debt has increased by 45 per cent from Rs 1.01 lakh crore in FY15 to Rs 1.46 lakh crore at the end of FY19. Revenues stood at Rs 54,814 crore while its net profit stood at Rs 12,596 crore in FY19

Vodafone Idea which is tangled in the AGR mess has the eighth highest debt at Rs 1.26 lakh crore for a listed entity in India. Vodafone is a British telecom major which entered the Indian market through a merger with Hutchison in 2007. With Reliance Jio's launch in 2016, Vodafone and Idea merged in 2018, creating India's biggest telecom company by subscribers. At the end of FY19, Vodafone Idea's debt stood at Rs 1.26 lakh crore. Its debt has increased by a massive 369 per cent in the last four years from Rs 26,859 crore to Rs 1.26 lakh crore in FY19. The revenues of Vodafone Idea stood at Rs 37,833 crore while its net loss was Rs 14,800 crore in FY19.

Larsen & Toubro (L&T) which has presence across engineering, construction, realty, manufacturing, IT and Financial services has the ninth highest debt at Rs 1,25,555 crore for any listed Indian entity. L&T was established in 1938 and went public in 1950. Its debt has seen an increase of 34 per cent in the last four years. At the end of FY19, L&T's revenues stood at Rs 1.45 lakh crore while its profit was Rs 10,237 crore.

Bharti Airtel stands at the tenth spot with a consolidated debt of Rs 1,25,428 crore. Airtel is also involved along with Vodafone Idea in the AGR matter in which telecom players have to pay a considerable sum to the government of India. The debt of Bharti Airtel has increased by 50 per cent in the last four years from Rs 83,415 crore in FY15 to Rs 1.25 lakh crore at the end of FY19. The revenues of Airtel stood at Rs 83,921 crore while its profits were Rs 1,332 crore in FY19.