Consumption keeps India Inc humming, revenues rise 22%

New Delhi: India Inc began 2026-27 on a firmer footing, with aggregate revenues of 838 listed companies rising 22 per cent year-on-year in the June quarter, compared with 13 per cent growth in the March quarter, according to domestic rating agency ICRA.

The improvement reflected resilient consumption and commodity and bullion price-led value inflation, while the demand boost from last year’s GST rate cuts continued to support the automobile sector. The performance came despite the West Asia flare-up and El Nino concerns.

However, aggregate operating profit margin contracted by more than 200 basis points year-on-year and net profits remained broadly flat, mainly because of the oil-refining sector. Elevated crude prices and under-recoveries on LPG and petroleum products weighed on profitability. Excluding oil and gas, operating margins remained stable at 19 per cent, while net profits grew more than 20 per cent year-on-year, ICRA said. Its sample excludes financial sector entities and companies with annual revenues below Rs 50 crore.

Consumption-led sectors were among the strongest performers. Automobile original equipment manufacturers recorded the highest revenue growth, while FMCG, consumer durables, apparel, grocery retail, jewellery retail and quick-service restaurants also reported healthy performance. The IT services sector remained a soft spot, with constant-currency growth subdued.