2 weeks ago
India Inc revenue growth accelerates to 22% in Q1
A report from ICRA, a company that studies how businesses in India are doing, looked at 838 big companies.
It found that the money these companies earned from selling things grew 22 percent compared with the same time last year.
That growth was much faster than in the three months before.
Higher prices for raw materials and gold, plus people buying more things, helped companies earn more.
Car companies did especially well, and so did food brands, clothing stores, jewellery shops, and restaurants.
But companies did not keep as much profit as before.
Oil companies had a hard time because crude oil was expensive and they lost money selling some fuels like LPG.
If we leave out oil and gas companies, profits grew more than 20 percent.
Overall, Indian businesses are growing strongly, even though there are worries about problems in West Asia, the weather, and world trade.
India Inc's aggregate revenues grew 22% year-on-year in the June quarter of FY27, up from 13% in Q4 FY26.
Growth was driven by higher commodity and bullion prices, GST rate cuts benefiting automobiles, and resilient consumer spending, per ICRA.
Aggregate operating profit margins contracted by more than 200 basis points year-on-year while net profit growth remained largely flat.
The oil refining sector was the biggest drag on earnings, weighed down by elevated crude prices and under-recoveries on LPG and petroleum products.
Excluding oil and gas, operating margins stayed stable at about 19% and net profits rose by more than 20% year-on-year.
- Who
- 838 listed Indian companies, analysed in an ICRA review led by Senior Vice President Jitin Makkar
- What
- Aggregate revenues grew 22% year-on-year while profitability was pressured by the oil refining sector
- Where
- India
- When
- June quarter of FY27 (Q1 FY27); report released on Thursday
- Why
- Commodity and bullion price inflation, GST rate cuts benefiting automobiles, and resilient consumer spending
Key facts
- Report source
- ICRA rating agency
- Companies analysed
- 838 listed companies (excluding financial sector and revenues below Rs 50 crore)
- Revenue growth Q1 FY27
- 22% YoY, up from 13% in Q4 FY26
- Operating profit margin change
- Contracted by more than 200 bps YoY
- Net profit growth
- Largely flat overall; up over 20% YoY excluding oil and gas
- Core sector OPM (ex-oil and gas)
- Stable at around 19%
- Weakness driver
- Oil refining sector (elevated crude prices, LPG and petroleum product under-recoveries)
- Key growth sectors
- Automobile OEMs, FMCG, consumer durables, apparel, grocery retail, jewellery retail, QSR chains
- Key risks identified
- West Asia tensions, global trade uncertainty, El Nino impact
Quotes
Jitin Makkar
Senior Vice President and Group Head‑Corporate Ratings, ICRA
““Though concerns over a demand‑and‑cost shock weighed on sentiments at the beginning of the quarter, the eventual impact was limited. Consumption‑led sectors were among the key growth drivers.””
thehansindia.com









