Consumption cos bare revenue-profit gap

Mixed bag Rising input costs and tepid urban demand are squeezing margins, even as pricing actions help protect revenue.

- Manjul Paul

Consumption-focused companies drove a significant share of revenue growth for India Inc. in the March quarter (Q4), the final leg of fiscal year 2024-25, even as profit growth lagged. In contrast, non-consumption sectors turned in more robust bottomlines, pointing to a shifting dynamic in corporate performance.

This divergence—where consumption-led firms maintained sales momentum but ceded ground on profitability—underscores how rising input costs and tepid urban demand are squeezing margins, even as pricing actions helped protect revenues.