2 weeks ago

India Inc revenue growth accelerates to 22% in Q1

India Inc revenue growth accelerates to 22% in Q1
Consumption keeps India Inc humming, revenues rise 22% · thehansindia.com

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.

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

Sources

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