Rising costs sting early birds in Q3

India Inc. may have finally found its revenue footing in the December quarter after a year of sluggish demand.

- Abhinaba Saha

Aggregate company net profits rose only 4%.

(ISTOCKPHOTO)

However, the profit cycle appears to have flipped, driven by surging costs. Early Q3 FY26 results show the weakest profit growth in at least three years, despite the best top-line expansion in a quarter for corporate India in over a year.

A Mint analysis of 189 early results reported so far—including both financial as well as non-financial companies—shows aggregate revenue up roughly 9% year-on-year (yo-y). However, net profits rose only 4% as total expenses jumped 14%—the sharpest increase in two years, and the first time in at least three years that expenses have grown faster than income.