ICRA Expects India INC to Report MUmed Revenue Growth of 5-6% in Q2

ICRA said its analysis of the performance of 585 listed companies (Excluding Financial Sector Entities) in the first Quarter of FY2026 Reveled 5.5% Yoy Revenue Growth.

Rating Agency ICRA Expects India Inc to Report MUTED Revenue Growth of 5-6 per cent in the second Quarter of the fiscal as against 5.5 per cent in the preceding three months.

Coupled with Softening of Input Costs Such as Crude Oil and Coal, this will result in a STEADY Operating Profit Margin (OPM) in the range of 18-18.2 per cent on a year-on-yar (yoy) basis, basis, it said in ait Release.

As a result, the credit metrics of India inc inc in q2 fy2026 are likely to remain larger stable, with the interest coverage ratio at 4.9-5.1 time, against 4.9 times in Q1 FY2026, IT SAID.

“The ongoing geopolitical tensions and steep us tarifs continue to impact demand sentiments, especially for export-oriented sector, such as agro-chamicals, teams, auto and Auto and Auto and Auto Component Seafoods, Cut and Polished Diamonds, and It Services, “Said Kinjal Shah, Senior Vice President and Co -Group Head – Corporate Rating at ICRA Limited.

She Further Said That While Domestic Rural Demand Remains Resilient, Urban Demand is Yet to Recover meaningfully.

Despite Tailwinds Such as Income Tax Relief and Esing Food Inflation, A Recovery in Sentments would be key to a pickup in urban demand. In that context, the expected GST Rate Cuts Blad Provide some Stimulus to Demand, Shah Added.

ICRA said its analysis of the performance of 585 listed companies (Excluding Financial Sector Entities) in the first Quarter of FY2026 Reveled 5.5 per cent yoy revoy revoy revione Consumption-oriented sectors and infrastructure-oriented sector.

Following a seasonally strong Q4 fy2025, Revenues of India Inclained Sequentially by Around 4.1 per cent in Q1 Fy2026, LED Primarily by Sector Like Real Estate, CONSTRUCTRUCTION, CAPITURUCTION, CONSTRUCTION, CONSTRUCES Airlines, The Rating Agency said.

It added that white the overall urban demand growth has been over the past 18 months, Premimization of Consumption is Apparent Across Sext Across Several Product Categories – From Automobiles to FMCG to FMCG to Watches.

The product mix change is supporting headline revival growth at a time when Volume Growth has been soft, it said.

Likweise, Organized Players in Sector, Including Hospitality, Hospitals, And Jewelery Retail, Are Expanding their footprint through a mix of acquestions and other commercials Overall revenue growth, icra said.

Published on August 27, 2025