India Inc Q1 FY27 earnings review

ICRA's review of Q1 FY27 results for 838 listed Indian companies (excluding financials and small caps) showed aggregate revenue growth of 22% YoY, accelerating from 13% in Q4 FY26. Growth was driven by commodity and bullion price inflation, continued demand from GST rate cuts, and resilient consumption despite West Asia tensions and El Niño–Southern Oscillation concerns. However, aggregate operating profit margin contracted by over 200 bps YoY, and net profits were flat, mainly due to the oil-refining sector where elevated crude prices and under-recoveries on LPG and petroleum products weighed on profitability. Excluding oil & gas, OPM was stable at 19% and net profits grew over 20% YoY. Automobile OEMs led revenue growth, while FMCG, consumer durables, apparel, grocery retail, jewellery retail, and quick-service restaurants performed well. IT services remained a soft spot with subdued constant-currency growth, and domestic cyclicals like cement and sugar lagged. The INR depreciated sharply against the USD, causing forex losses. Government capex rose 24% YoY to Rs 3.4 lakh crore, with new project announcements at a multi-quarter high in data centres, electronics, and nuclear power. ICRA expects geopolitical tensions and commodity volatility to remain key monitorables, but healthy balance sheets provide a cushion.