Overview

• Operating profit margins are projected to rise by 10–40 basis points to reach 18.2–18.5% in the April–June quarter of FY2026, according to ICRA.
• Stable revenue growth is expected as rural demand stays healthy and urban consumption benefits from income tax relief, easing food inflation and lower EMI burdens.
• India Inc’s interest coverage ratio is forecast to improve to around 5.1–5.2 times following cumulative repo rate cuts of 100 basis points.
• Investments in sunrise sectors such as electronics, semiconductors and electric vehicles are set to accelerate under government production-linked incentive programs.
• Firms linked to railways and defense will capitalize on robust order books even as export-oriented industries face headwinds from geopolitical tensions.