- Aggregate consolidated revenues of 838 listed companies expanded by 22% YoY in Q1 2026-27, materially higher than the 13% YoY in Q4 2025-26, partly driven by commodity and bullion price inflation.
- Aggregate EBITDA margins (excluding oil and gas) remained broadly stable at 19% in Q1 2026-27, with net profits expanding by over 20% YoY.
- India Inc's interest coverage ratio improved to 7.2 times from the 6.5-6.8 times range of the preceding four quarters, supported by stable finance costs.
- The oil and gas sector, particularly oil refining, was the primary drag on profitability due to elevated crude prices and under-recoveries on petroleum products; pressure was also concentrated in aviation.
- Central Government capital expenditure rose by 24% YoY to Rs 3.4 trillion in Q1 2026-27, accounting for over a quarter of the full-year budgeted target.
- In Q4 2025-26, aggregate revenues grew 13% YoY.
India Inc showcased impressive financial resilience in Q1 2026-27, achieving a 22% year-on-year revenue growth across a sample of 838 listed companies, excluding financial entities. This growth was significantly higher than the 13% increase in the previous quarter, indicating a robust recovery despite global economic challenges.
Aggregate EBITDA margins remained stable at 19%, with net profits rising over 20% year-on-year. The interest coverage ratio also improved to 7.2 times, reflecting strong financial health among companies, particularly in commodity-linked sectors like metals, which benefited from rising global prices.345
However, the oil and gas sector faced significant pressure due to high crude prices, impacting overall profitability. Sectors such as aviation and oil refining struggled with compressed margins, while consumption-driven sectors like automobile OEMs and FMCG reported strong growth. The chemicals sector showed signs of recovery after a prolonged downturn, although the IT services sector lagged with subdued growth amid cautious global technology spending.67
Additionally, the Central Government's capital expenditure rose by 24% YoY to Rs 3.4 trillion, focusing on railways, defence, and state transfers, further supporting economic stability in the face of external pressures.8
“Aggregate EBITDA margins held at 19% (ex-oil & gas) while net profits rose over 20% YoY, and the interest coverage ratio improved to 7.2 times from 6.5-6.8 times. Oil refining and aviation dragged profitability, but metals and consumption sectors like auto OEMs and FMCG showed growth traction.”
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