Corporate revenues jump most in six quarters on GST push
Mumbai: Corporate revenues in the three months to December surged the most in six quarters, undergirding double-digit profit growth for India Inc for six months in a row, as the biggest goods and services tax (GST) reforms since the 2017 nationwide adoption of a uniform levy drove sales higher in sectors such as automotive, energy, metals and financials.
Buoyancy in these large-weighting sectors helped offset the one-time financial impact of India's revamped labour codes on the $280-billion technology outsourcing and communications businesses that collectively have significant weights on the Nifty 50 - just after the financials.
Momentum Seen in FY27
Analysts expect India's corporate earnings to maintain their world-leading, double-digit growth rates in FY27 too, as bespoke trade deals on either side of the Atlantic seaboard buoy New Delhi's export prospects in two of the world's largest consuming blocs.
In the third quarter, for a common sample of 3,723 companies considered by ETIG, revenue and net profit rose 9.8% and 13.5%, respectively. The growth rates were 8.1% for revenue and 14.5% for net profit in the second quarter ended September 2025.
"Earnings growth for the companies under coverage at 16% year-on-year was in line with our estimates, largely driven by metals, oil and gas, and banking and finance sectors," said Gautam Duggad, institutional research head, Motilal Oswal Financial Services citing that Nifty 50 companies delivered 7% profit growth.
