India Inc posts 15.6% revenue growth amid rising input costs
India Inc's early birds just posted their strongest revenue growth in over three years, up 15.6% compared with last year.
But it's not all good news: rising costs, especially for raw materials (up a hefty 25.2%), squeezed operating margins to their lowest point in almost three years.
Net profits grew by nearly 11% year over year, but actually slipped a bit compared with the previous quarter.
AI drives it, costs squeeze margins
IT firms kept up momentum thanks to strong demand for AI services, though there are some worries about what's next.
Auto parts makers had mixed luck: some struggled with higher input costs while others benefited from better sales.
FMCG brands managed decent growth despite pricey ingredients and new competition from quick-commerce apps.
Metal-related industries felt margin pressure too, while hotels and capital market businesses saw some expansion.
Across the board, companies are juggling growth with the challenge of rising expenses eating into profits.