Indian companies start FY2027 with 22% June-quarter revenue jump
Indian companies kicked off FY2027 with impressive momentum, posting a 22% jump in revenue for the June quarter, way up from last quarter's 13%.
This growth was powered by strong consumer demand, lower GST rates, and pricier commodities.
Profit margins down over 200 bps
Even with booming sales, profits didn't keep pace. Overall profit margins dropped by over 200 basis points, and net profits stayed flat.
Still, sectors like autos, FMCG, jewelry retail, and quick-service restaurants saw solid gains.
Meanwhile, IT services remained a weak spot, with constant-currency revenue growth staying subdued, and export-focused industries faced pressure.
ICRA pointed out risks from global tensions, but noted that Indian companies have strong balance sheets and comfortable credit metrics to weather challenges.