India Inc’s revenue growth for the first quarter of FY26 is estimated at a modest 4–6 per cent, down from around 7 per cent in the preceding two quarters, according to Crisil Intelligence.
The dip comes amid sluggish performance in the power, IT services, and steel sectors, which together account for one-third of the revenue from over 600 companies analysed.
Crisil Intelligence stated that the early onset of monsoon and geopolitical uncertainties adversely affected sectoral performance in April–June.
Power demand fell due to a cooler summer, leading to an 8 per cent decline in power sector revenue and a 2–3 per cent drop in coal demand.
The IT services sector saw flat revenue growth as global uncertainties caused project delays. The steel sector managed a modest 1–3 per cent growth, affected by maintenance shutdowns and a 2–4 per cent fall in steel prices.
Pharma, Telecom, and Retail Sectors Propel Growth
Despite the overall slowdown in India Inc revenue growth, five sectors — pharmaceuticals, telecom services, organised retail, aluminium, and airlines — likely drove the positive momentum.
The pharmaceuticals sector grew 9–11 per cent on-year, outperforming India Inc’s quarterly growth trend for the last ten quarters, thanks to strong exports and stable domestic demand.
Telecom services witnessed a 12 per cent rise in revenue, driven by costlier subscription plans. Organised retail posted a 15–17 per cent increase, led by strong performance in value fashion and food and grocery segments.
The aluminium sector revenue surged by 23 per cent due to improved demand, higher output, and export opportunities. The airline sector gained 15 per cent in revenue as volumes rose by 10–12 per cent, helped by fewer aircraft groundings and fleet expansion.
Crisil Intelligence also reported a 4 per cent rise in auto sector revenue, supported by better retail sales and higher export realisations.
Construction sector revenue grew 6 per cent due to a low base from last year’s election disruptions.
The cement and FMCG sectors saw volume-led growth of 3–4 per cent and 4–5 per cent, respectively, with rural demand boosting FMCG sales.
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