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India Inc likely to see slower revenue growth, margin pressure in Q1FY27: ICRA
Jun-19-2026

Rating agency ICRA in its latest report has said that India Inc likely to witness moderation in its revenue growth to mid-to-high single digit in Q1 (April-June) 2026-27 as compared with the 13.2 per cent growth recorded in the fourth quarter of FY26. The agency also expects operating profit margins to decline by 100-150 basis points on a year-on-year basis in Q1FY27.  

ICRA noted that elevated fuel, logistics, and packaging costs arising from the West Asia crisis and cost escalation for imported inputs caused by INR depreciation are likely to put pressure on corporate profitability in the near term. It further said the emergence of El Nino conditions could adversely affect rural demand, impacting revenues of a large section of the corporate sector, which had posted a healthy revenue growth in Q4FY26. 

However, the report said the margin pressure could be partially offset by price revision, albeit partially or with a lag, as an abrupt price hike may impact demand and competitive position. In addition, the report said focus on fixed cost optimisation and efficiency improvement by organised players amid a challenging operating environment and the benefits arising from INR depreciation for exporters are expected to cushion the margin pressure at an aggregate level, to a certain extent.


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