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Informist, Thursday, Jul. 9, 2026

 

MUMBAI – Crsil Intelligence Thursday said that passing on higher costs to customers is likely to have increased the revenue of Indian corporates 11–11.5% in the June quarter. This compares to revenue growth of 9.6% reported in the previous quarter. If true, this will be the fastest pace of top line growth in two years, the research agency said in a report. This is despite supply disruptions and increase in input costs due to the West Asia conflict. 

 

Domestic demand during the quarter held up reasonably well, allowing Indian companies to pass on higher freight, fuel, packaging, and feedstock costs to consumers, Crisil Intelligence noted. The research agency's analysis indicates that this is the case for 400 companies across 47 sectors, which represent nearly half of India's listed market capitalisation.

 

"For much of the past two years, revenue growth was powered largely by volume. But this time around, pricing was the primary driver, contributing more to revenue growth than volume in sectors such as aluminium, steel, cement, airlines, fertilisers and gems and jewellery," said Sehul Bhatt, director of Crisil Intelligence. Bhatt added that while the growth wasn't uniform, it was broad-based enough to prop up the aggregate number.

 

 

Automobiles, consumer durables, telecom services, power generation and parts of healthcare continued to draw support from healthy domestic demand, according to Crisil Intelligence. "Automobiles and white goods benefited from rationalisation of goods and services tax rates, while power benefited from peak demand and telecom from premiumisation and data monetisation," Crisil Intelligence said. 

 

The automobile sector was the significant contributor to the growth. The sector's revenue is expected to rise 22-24% on year on the back of GST-led demand, healthy passenger vehicle and two-wheeler sales, commercial vehicle demand, export growth, and selective price increases, according to Crisil Intelligence. Power generation companies are expected to report 8-10% on-year revenue growth, supported by an estimated 8% increase in power demand, the research agency added. 

 

"Telecom services revenue is expected to have increased 10–11%, driven by premiumisation, data monetisation, migration to postpaid plans and subscriber upgrades," Crisil Intelligence said.

 

Consumer-facing sectors such as fast-moving consumer goods companies are likely to remain resilient and are expected to post year-on-year revenue growth of around 6-7%. Crisil Intelligence said this is due to selective price increases, though higher packaging, logistics and food-related costs likely weighed on profitability.

 

Meanwhile, export-oriented sectors such as textiles, pharmaceuticals, and processed food faced disruption from higher freight rates, and longer shipping schedules, according to the research agency. "Pharmaceuticals held up better than most export-linked sectors, with revenue estimated to have grown around 12% on-year," Crisil Intelligence said. 

 

It added that three factors would determine the trajectory of corporate performance. First, the extent of further price hikes and their impact on demand, second the companies' ability to protect volumes while recovering higher costs and third, the pace at which cost pressures in fuel, freight, feedstock, and packaging begin to normalise, the research agency said.  End

 

Reported by Adhithya Aji

Edited by Avishek Dutta

 

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