Indian companies are expected to register stable revenue growth in the April–June quarter of the current financial year, lifted by strong domestic demand, a report by ratings agency ICRA released on Monday said.
However, lingering geopolitical tensions are likely to weigh on sentiment, particularly for export-driven sectors.
ICRA projects operating profit margins for the first quarter of FY26 to remain steady at 18.2–18.5%, continuing a trend of gradual recovery seen in recent quarters.
The improved profitability is also being supported by a fall in interest costs, following cumulative repo rate cuts of 100 basis points, which in turn is expected to boost India Inc’s interest coverage ratio.
“Given the uncertain global environment, ICRA expects the private capital expenditure cycle to remain measured,” said Kinjal Shah, senior vice president at ICRA.