India Inc’s revenue growth surged to 11–11.5% year-on-year in the first quarter of FY27, the fastest pace in two years, as per a report by Crisil Ratings. Strong domestic demand and price hikes helped offset the impact of higher input costs due to the West Asia conflict, enabling companies to maintain robust growth rates. Despite supply disruptions in West Asia leading to increased fuel, freight, packaging, and feedstock costs, companies managed to pass on some of these higher costs to consumers, thanks to resilient domestic demand.
Sehul Bhatt, Director at Crisil Intelligence, highlighted that while revenue growth in the past two years was mainly volume-driven, this time pricing played a more significant role in sectors like aluminium, steel, cement, airlines, fertilisers, and gems and jewellery. The growth, though varied across industries, was substantial enough to boost aggregate corporate revenues, with India Inc witnessing a 9.6% revenue growth in the fourth quarter of FY26.
The report, based on Crisil’s analysis of over 400 listed companies across 47 sectors (excluding banking, financial services, and oil and gas), revealed that the automobile sector led the revenue growth at 22-24% year-on-year. This growth was supported by GST-driven demand, strong sales in passenger vehicles and two-wheelers, increased demand for commercial vehicles, export growth, and selective price hikes. White goods also benefited from GST rationalisation, while telecom revenue saw an almost 11% rise due to premiumisation, enhanced data monetisation, and a shift to postpaid plans.
Power generation revenue witnessed a growth of nearly 8-10%, propelled by an estimated 8% surge in peak electricity demand. Primary aluminium producers experienced a substantial 51-53% revenue growth due to supply disruptions, reduced imports, higher regional premiums, and capacity expansions.
