India’s corporate sector shows resilience as sales rise 24% in Q1 FY27
India’s corporate sector remained resilient in Q1 FY27, with net sales of 2,257 listed non-BFSI companies rising 24% year-on-year, according to SBI Research. However, profitability growth was slower, with EBITDA up 9% and PAT increasing 4%, as higher input costs weighed on operating margins.
- Aug 16, 2026,
- Updated Aug 16, 2026 7:35 AM IST
India’s listed corporate sector showed resilience in the first quarter of FY27, with aggregate net sales of 2,257 non-BFSI companies rising 24% year-on-year, even as profitability growth remained comparatively modest amid higher input costs. According to SBI Research, EBITDA increased 9% and profit after tax (PAT) rose 4% during the quarter, pointing to strong revenue momentum but pressure on operating margins.
Revenue growth remains broad-based
The sharp increase in net sales indicates that corporate activity remained supportive despite persistent global uncertainties and cost pressures. SBI Research said the performance of the 2,257 listed non-BFSI companies remained resilient in Q1 FY27, with sales, EBITDA and PAT all registering year-on-year growth.
At the sector level, Diamond, Gems & Jewellery recorded the strongest sales growth at 45%, followed by Trading at 40% and Automobiles at 30%. The numbers suggest that revenue expansion was not confined to a single segment, with consumer-facing, industrial and trading businesses contributing to the overall performance.
MUST READ: 'At least one Indian bank should...': PM Modi's ambitious target for India Inc ft. Fortune 500
Operating profitability, however, presented a more mixed picture. EBITDA growth was led by Diamond, Gems & Jewellery at 54%, followed by Chemicals at 48% and Realty at 41%. On the bottom-line front, Chemicals posted the highest PAT growth at 64%, followed by Textiles at 63% and Diamond, Gems & Jewellery at 60%.
Input costs weigh on margins
Despite the growth in earnings, SBI Research flagged a moderation in aggregate operating margins. The EBITDA margin of the 2,257 companies declined to 14.9% in Q1 FY27 from 16.8% in Q1 FY26 and 16.2% in the preceding quarter.
The research report attributed the margin compression mainly to an increase in input costs, suggesting that companies in several sectors were unable to completely pass higher costs on to customers. Healthcare saw the sharpest year-on-year margin decline of 2.8 percentage points, followed by Cement at 2.2 percentage points and Entertainment at 2.1 percentage points.
There were, however, pockets of improvement. Chemicals recorded a 2.8 percentage-point expansion in EBITDA margin, while Textiles improved by 1.9 percentage points, Steel by 1 percentage point and Diamond, Gems & Jewellery by 0.6 percentage point.
Corporate performance supports broader growth outlook
SBI Research placed the corporate earnings performance alongside other indicators of economic resilience. Its August 15 report projected real GDP growth at 8% for Q1 FY27, while noting that domestic demand and corporate performance remained supportive.
The combination of strong sales growth and positive, albeit slower, earnings growth suggests that companies entered FY27 with relatively healthy demand conditions. However, the decline in aggregate EBITDA margins highlights the challenge of converting higher revenues into proportionately stronger profits. For the corporate sector, sustaining growth will therefore depend not only on demand but also on companies’ ability to manage input costs and protect margins.
India’s listed corporate sector showed resilience in the first quarter of FY27, with aggregate net sales of 2,257 non-BFSI companies rising 24% year-on-year, even as profitability growth remained comparatively modest amid higher input costs. According to SBI Research, EBITDA increased 9% and profit after tax (PAT) rose 4% during the quarter, pointing to strong revenue momentum but pressure on operating margins.
Revenue growth remains broad-based
The sharp increase in net sales indicates that corporate activity remained supportive despite persistent global uncertainties and cost pressures. SBI Research said the performance of the 2,257 listed non-BFSI companies remained resilient in Q1 FY27, with sales, EBITDA and PAT all registering year-on-year growth.
At the sector level, Diamond, Gems & Jewellery recorded the strongest sales growth at 45%, followed by Trading at 40% and Automobiles at 30%. The numbers suggest that revenue expansion was not confined to a single segment, with consumer-facing, industrial and trading businesses contributing to the overall performance.
MUST READ: 'At least one Indian bank should...': PM Modi's ambitious target for India Inc ft. Fortune 500
Operating profitability, however, presented a more mixed picture. EBITDA growth was led by Diamond, Gems & Jewellery at 54%, followed by Chemicals at 48% and Realty at 41%. On the bottom-line front, Chemicals posted the highest PAT growth at 64%, followed by Textiles at 63% and Diamond, Gems & Jewellery at 60%.
Input costs weigh on margins
Despite the growth in earnings, SBI Research flagged a moderation in aggregate operating margins. The EBITDA margin of the 2,257 companies declined to 14.9% in Q1 FY27 from 16.8% in Q1 FY26 and 16.2% in the preceding quarter.
The research report attributed the margin compression mainly to an increase in input costs, suggesting that companies in several sectors were unable to completely pass higher costs on to customers. Healthcare saw the sharpest year-on-year margin decline of 2.8 percentage points, followed by Cement at 2.2 percentage points and Entertainment at 2.1 percentage points.
There were, however, pockets of improvement. Chemicals recorded a 2.8 percentage-point expansion in EBITDA margin, while Textiles improved by 1.9 percentage points, Steel by 1 percentage point and Diamond, Gems & Jewellery by 0.6 percentage point.
Corporate performance supports broader growth outlook
SBI Research placed the corporate earnings performance alongside other indicators of economic resilience. Its August 15 report projected real GDP growth at 8% for Q1 FY27, while noting that domestic demand and corporate performance remained supportive.
The combination of strong sales growth and positive, albeit slower, earnings growth suggests that companies entered FY27 with relatively healthy demand conditions. However, the decline in aggregate EBITDA margins highlights the challenge of converting higher revenues into proportionately stronger profits. For the corporate sector, sustaining growth will therefore depend not only on demand but also on companies’ ability to manage input costs and protect margins.