Archive · 27 Aug 2026
India Inc Growth Seen Slowing as Q2 FY27 Margins Tighten
ICRA expects Indian companies to grow more slowly in the second quarter of FY27.
It predicts revenue growth of 13% to 15%.
Companies may also find it harder to protect their profit margins.
Oil refining companies are facing weaker margins because some fuel sales do not fully cover costs.
Other industries are paying more for crude oil, palm oil, coal and related products.
Higher costs are also raising freight and packaging expenses.
Many companies are increasing prices to recover some of these extra costs.
The West Asia conflict and a weaker rupee have contributed to the pressure.
ICRA expects India Inc revenue growth to moderate to 13-15% in Q2 FY27.
Margins are expected to remain under pressure across several sectors.
Oil refiners face pressure from petroleum-product underrecoveries and thinner marketing margins.
Aviation, automobiles, FMCG, cement and other energy-intensive sectors face higher input, freight and packaging costs.
Most affected sectors are taking pricing actions to offset costs linked to the West Asia conflict and rupee depreciation against the US dollar.
- Who
- ICRA and India Inc companies, including oil refiners, aviation, automobile, FMCG and cement firms.
- What
- ICRA forecasts 13-15% revenue growth for India Inc in Q2 FY27, with margins under pressure.
- When
- Q2 FY27.
- Where
- India; the report also refers to the West Asia conflict and the US dollar.
- Why
- Higher crude oil and other input costs, increased freight and packaging expenses, the West Asia conflict and rupee depreciation are raising business costs.
- Revenue growth forecast
- 13-15% for India Inc in Q2 FY27
- Profitability outlook
- Margins are expected to remain under pressure
- Oil refining pressures
- Petroleum-product underrecoveries and thinner marketing margins
- Affected sectors
- Aviation, automobiles, FMCG, cement and other energy-intensive sectors
- Higher-cost inputs
- Crude oil and derivatives, palm oil and coal
- Additional cost pressures
- Freight and packaging material costs
- Company response
- Most affected sectors are taking pricing actions to pass on higher costs