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What is customer concentration? With real Indian companies

Customer concentration in plain English: how much revenue comes from a few big customers, what Indian accounts must disclose, with real company figures.

Reviewed by Cityfort Research on , 1 min read

For learning only. Cityfort is not a SEBI-registered adviser and does not recommend buying or selling any security. Prices shown are dated and may be out of date.

What does customer concentration mean?

Customer concentration is how much of a company's revenue comes from its few biggest customers. It is usually shown as the share from the top 1, top 5 or top 10 customers.

A soap maker sells to millions of shoppers through shops, so no single buyer matters much. A parts maker may sell most of its output to a handful of carmakers.

What must Indian accounts disclose?

If one outside customer brings in 10% or more of revenue, the company must say so. It must give the amount and the segment that earns it.[S1]

It does not have to name the customer.[S1] So a filing may mention "one customer" without naming it.

What does the number tell you?

It shows how much revenue depends on a few relationships. If one large customer cuts orders, a concentrated company feels it more.

It can also reflect long contracts with large clients, common in IT services and engineering. The number describes the business model; it is not a verdict on it.

Where do you see it on Cityfort?

Stock pages show it in "Who pays it" when the company reports it, with the period and the source. The examples below list what each company reports, in A–Z order.

See it in real companies

Customer concentration at companies on Cityfort

3 companies on Cityfort, listed A–Z (not ranked).

Infosys
Top 5 customers: 12.2% of revenueFY26 · source S6
Kalyani Steels
Largest customer: 25.6% of revenueFY26 · source S1
Saksoft
Top 5 customers: 42.0% of revenueFY26 · source S19

From each company's filings, as cited on its Cityfort stock page. These figures change when a stock page is updated.

Questions people ask

Do companies have to name their biggest customers?
No. Ind AS 108 asks them to disclose when one customer brings in 10% or more of revenue, and how much, but not the customer's name.[S1]
Where else do companies give this number?
IT services firms and other business-to-business companies often give the share of their top 1, 5 or 10 clients in results presentations.

Sources

  1. S1Ind AS 108, Operating Segments, paragraph 34 (as notified by MCA, amended to 13 Aug 2025) · ICAI, Compendium of Indian Accounting Standards 2025-26Tier 1: company or exchange filing · 13 Aug 2025

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For learning only. Cityfort is not a SEBI-registered adviser and does not recommend buying or selling any security. Prices shown are dated and may be out of date.

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Cityfort publishes educational content that explains how listed companies work. Cityfort is not registered with the Securities and Exchange Board of India (SEBI) as an Investment Adviser or Research Analyst and does not provide investment advice, recommendations, ratings, price targets or any opinion on whether to buy, sell or hold any security.

All information is taken from publicly available sources, mainly company filings on BSE and NSE, which are listed on each page with dates. We work to keep it accurate and correct errors publicly, but we do not guarantee that it is complete, accurate or up to date. Any market price or price-based ratio shown is dated, may be out of date by the time you read it, and is included only to explain concepts.

Statements by company management are reported as statements, with their date and source; they are not our forecasts.