India Inc Shows Earnings Resilience In June Quarter, Aggregate Revenues Grow 22%: ICRA

Aggregate revenues of a sample set of 838 listed companies grew 22% in the June quarter, higher than 13% YoY growth recorded in the March quarter, reflecting earnings resilience of India Inc offsetting weakness in the oil sector.

However, aggregate Operating Profit Margin (OPM) contracted by over 200 basis points (bps) YoY in the first quarter of 2026-27 and net profits were flattish mainly because of the oil-refining sector, where elevated crude prices and under-recoveries on LPG and petroleum products weighed on profitability.

Excluding oil & gas, OPM was stable at 19% and net profits grew by over 20% YoY, ICRA said.

"ICRA’s review of the results announced so far suggests that India Inc. began 2026-27 on a firmer footing than anticipated, with aggregate revenues of ICRA's sample set of 838 listed companies growing by 22% YoY in Q1, accelerating from the 13% YoY growth reported in the preceding quarter," the domestic rating agency said in a statement.

This was driven by commodity and bullion price-led value inflation, the enduring demand lift from the GST rate cuts last year that continued to spur the automobile sector, and resilient overall consumption volumes, notwithstanding the West Asia flare-up and El Nino worries, it added.

ICRA's sample set of 838 companies excludes financial sector entities and those with annual revenues of less than ₹50 crore.

The IT services sector, ICRA said, was a soft spot where constant-currency growth stayed subdued. Revenue growth also lagged in domestic cyclicals such as cement and sugar, and export-focused companies in sectors like textiles and auto components.

ICRA, Senior Vice President & Group Head-Corporate Ratings, Jitin Makkar said though concerns over a demand-and-cost shock weighed on sentiments at the beginning of the quarter, the eventual impact was limited. Consumption-led sectors were among the key growth drivers.

"While automobile Original Equipment Manufacturers (OEMs) recorded the strongest revenue growth, several other consumer-oriented sectors including FMCG, consumer durables, apparel and grocery retail, jewellery retail and quick-service restaurants also reported healthy performance," Makkar said.

Looking ahead, renewed geopolitical tensions in West Asia, the consequent volatility in crude oil and commodity prices, and an uncertain global trade environment will remain key monitorables. Nevertheless, healthy balance sheets and comfortable credit metrics of Indian corporates provide a meaningful cushion against potential earnings volatility and near-term external shocks, Makkar added.