Corporate India reported a 140 bps YoY improvement in operating profit margin (OPM) to16.1% in Q2 FY2026.Margin expansion in sectors like cement, oil & gas, telecom and power was partly offset by a margin contraction in sectors like retail, construction, and airlines. 

The OPM is likely to improve by 50-100 bps YoY in Q3 FY2026, supported by resilient rural demand, revenue growth spurred by festive season demand momentum and goods & services tax (GST) rate reductions, alongside the easing of input costs such as crude oil and coal.

Exhibit: Trend in aggregate revenue growth of India Inc. (YoY)

Source: Ace Equity; ICRA Research; Note: Data based on a sample set of 2,966 entities, excluding financial sector entities