ICRA: Corporate revenue growth to hit 5-6% in Q2 FY2026
India's big companies are expected to see their revenues grow by 5-6% year-on-year in the second quarter of FY2026, a slight bump from the 5.5% growth last quarter, says ICRA.
The boost comes from strong rural demand and more people choosing premium products, as organized brands keep gaining ground.
Still, there's some uncertainty—possible changes to GST could make people hold off on non-essential purchases for now.
Private investments may slow down, but government spending will help
Among 585 listed companies (excluding financials), consumer durables, retail, and hospitality led the way in Q1 with solid revenue gains.
Real estate and construction saw weaker demand, causing an overall dip compared to the previous quarter—but operating profit margins (OPM) stood at 18.1% overall in Q1 FY2026, with telecom and cement among the sectors benefiting from better demand and operating leverage.
Looking ahead, private investments might slow down due to global jitters, but government spending is likely to keep economic activity afloat even if things cool off later in FY2026.