ICRA projects India Inc.’s revenue growth at low teens in Q2 FY2027 (against a 21.3% YoY growth in Q1 FY2027) with a contraction in the OPM by 100-150 bps on a YoY basis owing to elevated raw-material, fuel, freight and packaging costs. Over the medium term, sustainability of India Inc.’s credit profile will hinge on resilience of demand and pricing power in the domestic market, while evolving geopolitical scenario and global trade dynamics will also remain monitorable.

• Revenues of 2,756 listed companies in ICRA’s sample set (excluding the financial sector) grew by a robust 21.3% YoY in Q1 FY2027. This was led by consumption-oriented sectors like automobiles and retail, supported by the sustained impact of the GST rate cuts in September 2025, premiumisation trends and market share shift towards organised players. A rally in prices of gold and non-ferrous metals boosted revenues of jewellery retailers and non-ferrous metal producers, while the oil and gas sector significantly contributed to the growth on the back of elevated crude oil prices.

• The YoY revenue growth of Corporate India in Q2 FY2027 is expected to remain healthy at 13-15%, supported by continued inflation-led growth, resilient demand in some key consumption-oriented sectors and festive stocking by trade channel partners. However, high prices may pare volumetric demand in some sectors, particularly operating in the price-sensitive segments. The growth momentum is likely to remain uneven across sectors, with domestic-market oriented sectors outperforming export-dependent businesses, given relatively resilient domestic demand vis-à-vis subdued demand scenario in the key markets globally.

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

Source: Ace Equity; ICRA Research; Note: Data based on a sample set of 2,756 entities, excluding financial sector entities33,920