Indian Inc's Revenue Growth Slows Amid Sectoral Challenges

CRISIL Market Intelligence reports a slowdown in Indian Inc's revenue growth, with sectors like construction and industrial commodities stalling, leading to a 5-7% growth in the July-September quarter. Despite this, profitability remains resilient with a 10% EBITDA rise, driven by export-linked and consumer discretionary sectors.

Indian Inc's revenue growth has noticeably slowed, as observed by CRISIL Market Intelligence and Analytics. The latest report for the July-September quarter reveals a modest 5-7% growth, the slowest in 16 quarters, due to sluggish performances in construction and industrial commodities.

Agricultural revenue, including fertilizers, has fallen sharply by 20-22%, while exports, accounting for 22% of revenues, only managed a 5% increase. Interestingly, consumer discretionary sectors like automotive and telecom services grew a robust 15%, marking a strong performance despite overall stagnation.

Despite subdued revenues, companies' profitability remains strong, with a 10% rise in EBITDA, expected to further improve by 50-150 basis points in fiscal 2025. This optimism is fueled by easing commodity prices and increased volume-driven growth, offering a hopeful outlook amid current challenges.