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Key Points

Corporate India saw modest 4-6% revenue growth in Q1, led by pharmaceuticals and retail. Geopolitical concerns and monsoon timing impacted sectors like IT and FMCG. Auto and telecom sectors are poised for recovery with improved demand. Airlines expect strong growth due to fleet expansion and reduced groundings.

Key Points: India Inc Q1 Revenue Grows 4-6% Led by Pharma and Retail

  • Pharma sector grows 9-11% YoY driven by strong exports
  • Retail and telecom services boost revenue despite margin pressures
  • Auto sector expected to rebound with 4% growth
  • Airlines project 15% income surge due to fleet expansion
2 min read

India Inc's revenue grows 4-6 pc in Q1; pharma, retail lead

Corporate India's Q1 revenue rises 4-6%, with pharma and retail sectors leading growth despite margin pressures from IT and FMCG.

"The early onset of monsoon and lingering geopolitical uncertainties impacted some sectors in the April-June period – Pushan Sharma, Crisil Intelligence"

Mumbai, July 28

The revenue of corporate Indian companies grew at a modest 4-6 per cent year-on-year (YoY) in the April-June quarter (Q1), according to a report on Monday.

Five sectors -- pharmaceuticals, communication services, organised retail, aluminium, and airlines -- pushed the revenue of corporate India, Crisil Ratings said in its latest report.

Pharmaceutical revenue growth is 9-11 per cent YoY, outpacing corporate India's growth over the past 10 quarters, due to robust export demand and a steady domestic market.

Even as earnings before interest, tax, depreciation and amortisation (EBITDA) rose 4 per cent YoY, the EBITDA margin fell 0.10 per cent to 0.30 per cent, weighed down by IT services, automobile, fast-moving consumer goods (FMCG) and pharmaceuticals.

“The early onset of monsoon and lingering geopolitical uncertainties impacted some sectors in the April-June period," said Pushan Sharma, Director, Crisil Intelligence.

"Geopolitical uncertainties impacted the IT services sector, leading to flat YoY revenue growth due to project delays caused by tariff concerns,” he added.

Looking forward, despite concerns of excessive inventory, high retail sales, increasing exports and product mix adjustments are expected to boost auto sector revenue by 4 per cent.

Engineering, procurement and construction (EPC) companies are expected to see a 6 per cent growth due to a low base effect from general elections in Q1 FY 2025. Revenue from telecom services is expected to grow 12 per cent due to more expensive subscription plans, the report said.

Airline income is projected to grow 15 per cent due to increased volume from reduced aircraft groundings and new aircraft additions.

A pick-up in rural demand supported the FMCG sector's volume growth and drove revenue growth of 17 per cent on-year in the tractor sector. Moderating food inflation, a favourable monsoon and a good harvest season for rabi crops contributed to the rebound in rural demand. Telecom services margin likely surged 290-320 bps on-year due to lower operating expenses, the report added.

- IANS

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Reader Comments

R
Rohit P
The rural demand revival is the best news here. Finally some relief for our farmers after tough years. Better monsoon + good rabi crop = happy villages = stronger economy. This is how India grows!
A
Aman W
Telecom companies increasing prices and showing growth - typical! 😒 Every time they hike tariffs, they call it "premium plans". Common people bear the cost while companies show revenue growth.
S
Shreya B
The IT sector slowdown is worrying. As someone working in Bengaluru tech park, we're seeing many projects getting delayed or cancelled. Hope the geopolitical situation improves soon for better business.
V
Vikram M
Airlines growing at 15% is impressive! More flights, better connectivity - this is great for business travelers like me. But hope they don't compromise on safety standards in this expansion phase.
K
Karthik V
While the numbers look positive overall, I'm concerned about the shrinking EBITDA margins across sectors. Companies need to focus on operational efficiency rather than just top-line growth.
N
Neha E
Organized retail growth shows how consumer behavior is changing in India. More people preferring malls and branded stores over local kirana shops. Interesting shift in our shopping culture!

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