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Slow sales, weak margins take sheen of India Inc Q1

Financial Express Lucknow

|

August 04, 2025

IT'S BEEN AN unremarkable earnings season for India Inc so far with most companies delivering ordinary numbers for the three months to June.

- KISHOR KADAM

Net sales for a sample of 771 companies (excluding banks and financials) were up 7% year-on-year, slower than in the previous two quarters and suggesting little improvement in demand.

Operating profit margins contracted 8 basis points year-on-year (y-o-y), the most in four quarters, despite a fall in raw material costs. As such, operating profits went up by just 6% y-o-y. The net profit increase of 6% y-o-y is partly the result of a big jump in other income of 20%. Also, the number has been bumped up by the 76% jump in the bottom line of Reliance Industries — adjusted for the extraordinary income, its profit was up by about 19.5% y-o-y.

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