Encouraging show

Profit increases on steady growth in revenue amid challenges and stable input costs

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Sales of corporate India excluding those of PSU Oil & Gas companies were up by 10% in Q2 FY 2026 over Q2 FY 2025. This is while the impact of heavy rains, consumer postpone purchase decision especially in certain sectors such as automobiles, consumer durables etc in expectation of GST tariff cut as well as export-oriented businesses continue to face global headwinds, including tariff uncertainties.

Thus, the early double-digit growth in revenue was largely driven by cement, power generation, healthcare and pharmaceuticals, hospitality, consumer durables, PSU banks, NBFC, tea, telecom service providers, aluminium/aluminium products, mining/minerals/metals, textiles and engineering turnkey services & electric equipments. In automobiles PV s sales though was subdued with early single digit growth, the auto OEMs in other segments have reported impressive growth in revenue along with auto components. Sectors such as construction, paints, domestic appliances, cement products, finance and private sector banking reported muted growth. But the drag was largely from industries such as entertainment, petrochemicals, cigarettes, shipping, cement products, air-conditioners and detergents.

The operating profit margins (OPM) expanded by marginal 10 basis points (bps) to 22.3%. Thus, the growth inoperating profit (OP) was 11%. Other income was marginally lower by 0.13%. Therefore, PBIDT was up 8%. Interest costs increased by 6% and, thus, PBDT grew by 10%. Depreciation was up 14%. The profit before tax (PBT) was up 9%. With taxation upby 5%, profit after tax (Pat) was up 11%. Eventually, profit attributable to owners was up 9% as profit from associates & minority interest being a loss of Rs 15954 crore as compared to a loss of Rs 7321 crore.

Corporate India's revenue including PSU oil & gas companies was higher by 9%. OP was up 14% with OPM expanding by 80 bps to 20.9%. The profit attributable to owners went up 13%.