India Inc's profit to stay strong on demand, lower costs: ICRA

Indian companiesare expected to maintain healthy operating profit margins in the first quarter of the current financial year (Q1 FY2026), supported by resilient domestic demand and easing input costs, according to a forecast analysis report by rating agency ICRA.

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The report highlighted that the steady demand in the economy, especially from consumption-driven and infrastructure sectors, is seen as a key factor supporting profitability.ICRA stated "India Inc>s operating profit margins (OPM) at 18.2-18.5 per cent in Q1 FY2026, following the sequential recovery over the past few quarters. This, coupled with a moderation in interest costs, owing to the recent repo rate cuts,>>The central bank has reduced the policy rate by a total of 100 basis points in recent months. As a result, the interest coverage ratio, a measure of a companys ability to repay interest on its debt, is expected to improve to around 5.1 to 5.2 times in Q1 FY2026, up from 5.0 times in Q4 FY2