Three days. 2,500 cancelled flights. 300,000 stranded passengers. In December 2025, IndiGo's relentless pursuit of operational efficiency collapsed under new pilot rest rules it had a year to prepare for. India's largest airline had optimised for profit so aggressively, it forgot that rules apply to them too.

In today's debates, profit is often painted as the villain. Headlines decry "greedy corporations" or blame capitalism for widening inequality and environmental damage.

The assumption is that profit and social good are inherently in conflict. The real question isn't whether Indian businesses should pursue profit, of course they should. It's whether they can align profit with a purpose that benefits both society and the bottom line. The evidence suggests you can. And as India cements its position as the world's fifth-largest economy, getting this balance right isn't optional; it's existential.

Profit becomes a problem when companies focus solely on short-term gains, ignoring long-term impact or societal benefit. They risk not only public trust but their own survival.

The Micromax Example

Take Micromax, an Indian smartphone company. Between 2013 and 2016, Micromax rose to the top of India's smartphone market by selling affordable phones designed for local needs, reaching around 22% market share by late 2014 and briefly surpassing Samsung. For a moment, it felt like an Indian company had cracked the code. But the company never invested in meaningful R&D or software development. They kept relying on low-cost outsourced devices, thinking they could play the price game forever. There was no vision beyond "sell it cheaper." No attempt to build something that would last.

Then Chinese brands arrived with better cameras, cleaner software, and the same prices. Xiaomi, Oppo, and Vivo weren't just cheap; they were actually good. Micromax couldn't keep up. By late 2015, their market share had dropped to under 15%, and by 2016, sales were falling even as the Indian smartphone market kept growing. Everyone was buying more phones, just not Micromax phones.

The Tata And Amul Models

Now consider the Tata Group, a conglomerate that took the opposite approach. Long before modern "purpose-driven" marketing existed, Jamsetji Tata established a system where the community is not just a stakeholder, but the reason for the company's existence. Today, Tata remains one of India's most profitable entities, yet 66% of the equity of Tata Sons is held by philanthropic trusts. They have funded hospitals, universities, and rural development for over a century. Here's what sets Tata apart, though: it isn't a nonprofit relying on donations to function. Tata rakes in a lot of money across salt, software and steel. They've shown for decades that inculcating social value into the company's DNA can be incredibly profitable.

And this isn't a story exclusive to boardrooms and billion-dollar balance sheets. Consider Amul: a cooperative model that empowered 3.6 million dairy farmers while building a ₹80,000 crore brand. Amul ensures profit is shared with producers, not extracted from them.

Turns out customers actually want to buy from companies that are making the world a better place; consequently, brand loyalty goes up. Employees care more about their work as they have a sense of mission and they stick around longer. Innovation happens because people care about society and what they're building. Profit and purpose are not enemies. When done right, they only strengthen one another.

There is more data to support this, not just these stories. A 2023 study conducted by McKinsey looked at more than 2,200 publicly traded firms and identified what they call "triple outperformers", companies excelling in revenue growth, profitability and ESG (environmental, social, governance) performance simultaneously. These firms grow around 10% to 11% annually, significantly outpacing competitors who ignored social and environmental factors. They also delivered better shareholder returns roughly 2.5 percentage points higher per year. Over time this compounds.

Companies Must Have A Social Goal

Meanwhile, Deloitte research shows that companies who have a clear social/environmental goal tend to have higher employee retention and stronger satisfaction among customers. People want to work for companies they believe in. They want to buy from brands they respect.

India's CSR Act (2013) mandates that large companies spend 2% of profits on social responsibility. While many people fear that it has become a normative "tick-box" exercise for compliance, the most successful companies use it as an opportunity to create long term benefits for society rather than simply performative gestures. What matters is whether purpose is actually at the core of how a company operates — not just how it presents itself. The Tata model works because the commitment is real and has been there for over a century. That's harder to fake and harder to replicate, which is exactly why it creates a lasting and meaningful competitive advantage.

The problem isn't making profit. It's making profit without caring about anything else. Companies that align what they earn with what they stand for can transform industries, drive innovation, and actually leave things better than they found them. They build trust that lasts. They attract talent that stays. They create customers who come back.

The future belongs to businesses that figure out how to balance purpose and profit. Indian founders face a choice: build like Tata, with purpose woven into the foundation, or chase short-term efficiency like IndiGo and Micromax until the wheels come off.

(The writer is a student at The Shri Ram School Moulsari, Gurugram, India. Views expressed are personal. He can be reached on linkedin and on email at krishivlaldas@gmail.com )