Corporate India's revenue growth slows to 3.4% in Q1FY26
Indian companies just posted their weakest revenue growth in nearly two years—up only 3.4% in April-June 2025, says a new ICICI Bank report.
That's down from 5.1% last quarter and much slower than the 6.8% seen a year ago, showing both manufacturing and services are losing steam.
Manufacturing and services both losing steam
Manufacturing saw its growth drop to just 2.8%, mostly because lower commodity prices hit sectors like refineries and fertilizers hard.
Services didn't fare much better—growth halved to 5.8%, with trade, transport, and real estate all feeling the pinch from sluggish demand and early monsoon rains.
Spending also cools off, with export challenges persisting
Spending by companies also cooled off, rising just 2.4%.
While big industries like steel and cement got a small boost from government projects, everyday brands (think FMCG), carmakers, and IT firms are still struggling with weak demand.
The report suggests policy tweaks or GST changes could help revive spending at home, but export-focused businesses—especially textiles—still face challenges from US tariffs.