Consumption Giants Drive Revenue But Lag in Profits

Analysts note that price increases have sustained volumes, and the trend is likely to continue

- 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.