India Inc posts weak profit...

OPERATING PROFIT MARGINS contracted by about 90 basis points, thanks to expenses having risen by 13.8% yo-y, leaving the increase in operating profits at just 7% yo-y.

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The good news is that the IT pack did fairly well with managements more hopeful now of demand picking up and of winning more deals. Clients are taking decisions more quickly, they observed. At Tata Consultancy Services (TCS), the value of wins moderated during Q3FY26 but the commentary suggested improving momentum in demand. Infosys raised its full-year revenue guidance also, sounding optimistic on discretionary spends.

Among the big disappointments has been Reliance Industries with the company reporting a growth in consolidated operating profits of just 5% yo-y. Analysts observed that the Ebitda (earnings before interest, tax, depreciation and amortisation) for the organised retail business was up only 1.1% as revenue growth was subdued.