India Inc revenues jump 22% in June quarter
Corporate India started FY27 on a stronger note, with aggregate revenues of 838 listed companies rising 22% year-on-year in the June quarter, accelerating sharply from
Corporate India started FY27 on a stronger note, with aggregate revenues of 838 listed companies rising 22% year-on-year in the June quarter, accelerating sharply from 13% growth in the March quarter, according to rating agency ICRA.The growth reflects the resilience of India Inc, which offset weakness in the oil sector during the first quarter of 2026-27. However, profitability remained under pressure, with aggregate operating profit margin (OPM) declining by more than 200 basis points year-on-year, while net profits remained largely flat.ICRA said the weakness was primarily concentrated in the oil-refining sector, where elevated crude oil prices and under-recoveries on LPG and petroleum products weighed on earnings.Excluding the oil and gas sector, the picture was considerably stronger.
OPM remained stable at around 19%, while net profits grew by more than 20% year-on-year, the rating agency said.“India Inc. began 2026-27 on a firmer footing than anticipated,” ICRA said, noting that aggregate revenue growth among its sample of 838 listed companies accelerated to 22% in Q1 FY27 from 13% in the previous quarter.Consumption, commodity prices drive revenue growthICRA attributed the revenue growth to higher commodity and bullion prices, continued demand momentum following GST rate cuts last year and resilient consumption.The automobile sector continued to benefit from the demand boost, while overall consumption remained firm despite concerns around the West Asia conflict
and El Niño.ICRA's sample covers 838 listed companies but excludes financial sector entities and companies with annual revenue of less than Rs 50 crore.IT, cement and sugar remain weak spotsNot all sectors performed equally well. IT services remained a weak spot, with constant-currency revenue growth staying subdued.Revenue growth also lagged among domestic cyclical sectors such as cement and sugar, while export-oriented industries including textiles and auto components faced pressure.Consumption-driven sectors, however, emerged as important growth engines during the quarter.“While automobile Original Equipment Manufacturers (OEMs) recorded the strongest revenue growth, several other consumer-oriented sectors including FMCG, consumer durables, apparel and grocery retail, jewellery
retail and quick-service restaurants also reported healthy performance,” ICRA Senior Vice President and Group Head-Corporate Ratings Jitin Makkar said.India Inc faces external risksLooking ahead, ICRA said geopolitical tensions in West Asia, crude oil and commodity price volatility and uncertainty around global trade will remain key risks for corporate earnings.However, strong balance sheets and comfortable credit metrics among Indian companies could provide a cushion against short-term external shocks and earnings volatility, Makkar said.The findings suggest that while India's corporate sector continues to face challenges from global uncertainty and input costs, domestic consumption and resilient corporate balance sheets are supporting earnings growth in FY27.
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