Indian Corporate Revenue Hits Two-Year High in First Quarter

Indian corporate revenue grew by 11-11.5% year-on-year in the first quarter of FY27, marking the fastest growth pace in two years. An analysis by Crisil Intelligence of over 400 listed companies across 47 sectors found that resilient domestic demand and pricing power drove these gains, helping to offset rising expenses for fuel, freight, and packaging linked to conflict in West Asia.

The automobile sector led this growth with a 22-24% increase, aided by strong vehicle sales and GST rate rationalization. Primary aluminium producers saw surges of 51-53%, while power generation and telecom also recorded gains. In contrast, export-oriented sectors such as pharmaceuticals and textiles struggled with shipping disruptions and higher freight rates.

Despite the revenue surge, overall profitability remained subdued. Companies could only partially pass cost escalations to consumers, leading to an estimated aggregate EBITDA margin contraction of 75-100 basis points. This pressure was particularly acute in sectors where pre-escalation inventory cushions were depleted, forcing companies to absorb higher replacement costs for feedstock, industrial diesel, and commercial liquefied petroleum gas.