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India Inc’s revenue likely to grow by 6% in Q1: CRISIL

India Inc’s revenue likely to grow a modest 4-6 percent during April-June quarter (Q1) of 2025-26 (FY26), slowing from around 7 percent growth in the previous two quarters, due to sluggish performance by the power, coal, information technology (IT) services and steel sectors, which collectively account for a third of the revenue of over 600 companies analysed, according to a CRISIL release.

Earnings before interest, tax, depreciation and amortisation (Ebitda) likely to rise around 4 percent on-year. However, Ebitda margin likely fell 10-30 basis points (bps), weighed down by IT services, automobile, fast-moving consumer goods (FMCG) and pharmaceuticals.

“The early onset of monsoon and lingering geopolitical uncertainties are expected to have materially impacted some sectors in April-June. To wit, the rains-induced cooler summer culled demand for electricity. Consequently, the power sector’s revenue is seen declining 8 percent on-year. The lower demand also pushed down spot prices of electricity, and led to a 2-3 percent lower demand for coal. On the other hand, geopolitical uncertainties impacted the IT services sector, where revenue growth is seen flat on-year due to project delays stemming from tariff worries, which led to a slowdown in activity,” said Pushan Sharma, Director, Crisil Intelligence   .

Despite no significant increase in the Union Budget allocation for the construction sector, its revenue is expected to climb up 6 percent on-year as engineering, procurement and construction (EPC) companies benefited from a low base effect caused by disruptions from general elections in the first quarter of last fiscal. Five sectors - pharmaceuticals, telecom services, organised retail, aluminium and airline are likely drove revenue growth.