India Inc profits crawl as sales stay sluggish

But operating profit margin of 28.7% the best in 21 quarters

- KRISHNA KANT

Corporate India's struggle with subdued revenue and earnings growth persisted in the October-December quarter of 2024-25 (Q3FY25).

The combined net sales (gross interest earnings for lenders) of listed companies grew in single digits for the seventh consecutive quarter, while their combined net profit rose by a single digit for the third straight quarter. Total net earnings of 3,618 listed companies increased 6.2 per cent year-on-year (Y-o-Y) to approximately ₹3.47 trillion, while net revenue rose 7 per cent Y-o-Y to about ₹37.73 trillion in Q3FY25.

With this, listed firms' combined net profit rose 4.9 per cent Y-o-Y in the first nine months of FY25 (April-December 2024), against 27.4 per cent earnings growth in FY24 (full year). Their net sales climbed 7.2 per cent Y-o-Y in 9MFY25, a slight improvement from the 6.8 per cent Y-o-Y growth in the entire FY24.

Overall earnings growth was primarily driven by improved margins, as manufacturing firms benefited from lower raw material, energy, and interest costs. However, banks and non-banking financial companies (NBFCs) saw margin compression due to rising interest expenses outpacing gross interest income.