Which firms dominate India’s audit market in FY26?
The Indian corporate audit market remains dominated by the Big Four accounting firms, with EY Group, KPMG Group, and Deloitte Group securing the top three positions among the 10 auditors handling the most listed company audits in the financial year 2025-26 (FY26), according to data compiled by Prime Infobase. EY Group led with 187 audits, a 3% increase from FY25, while KPMG Group saw an 11% rise to 157 audits. Deloitte Group followed with 131 audits, slightly down from 137 in the previous fiscal year.
How does market capitalization influence audit firm dominance?
While audit volume reflects market reach, market capitalization metrics highlight the financial scale of companies audited. In FY26, KPMG Group topped this metric, auditing firms accounting for 15.67% of the total market capitalization of listed entities, equivalent to Rs 71,14,060 crore. EY Group closely followed with 15.35% (Rs 69,73,130 crore), and Deloitte Group held 13.94% (Rs 63,31,111 crore). Together, KPMG, EY, and Deloitte controlled nearly 45% of the total market capitalization of audited companies.
What trends are emerging in joint audits and auditor changes?
The trend of joint audits saw a slight decline in FY26, with 164 companies (7% of 2,436 listed firms) using multiple auditors, down from 170 (8% of 2,240) in FY25. Of these, 119 were private sector entities, and 45 were public sector undertakings or public sector banks. Meanwhile, auditor changes increased, with 71 instances of mid-term cessations across 68 companies, up from 58 in 55 companies in FY25. Additionally, 22 auditors resigned after completing their FY26 assignments despite remaining tenure.
How many audit firms operate in India’s market?
Only 25 audit firms managed portfolios of 10 or more listed companies in FY26, while 649 firms audited just a single listed company. This stark disparity underscores the market’s consolidation. The Big Six institutional audit groups collectively held 61% of the total market capitalization, with the global Big Four accounting firms accounting for 51% of the entire market.
Which firms showed the fastest growth in FY26?
CNK & Associates LLP emerged as the fastest-growing firm in the top 10, increasing its audit count by 41% to 24 companies. Other notable performers included GT Group (125 audits) and BDO Group (97 audits), though they remained behind the Big Four in both volume and market capitalization shares.
What challenges does the audit market face?
The concentration of audit work among a small number of firms raises questions about competition and regulatory oversight. With 649 firms auditing only one listed company, concerns about market fragmentation and quality control persist. Additionally, the rise in auditor changes and mid-term cessations may signal instability in corporate governance practices.
What is the outlook for India’s audit sector?
Regulatory bodies and industry observers will likely monitor the market’s evolution, particularly as joint audit trends and auditor turnover continue to shift. The dominance of the Big Four, combined with the limited presence of smaller firms, may prompt calls for policies to diversify the audit landscape and ensure robust financial reporting standards.
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