India Inc Sees Double-Digit Profit Growth in Q4 Amid Reliance Industries' Decline
India Inc net profit rising in double digits in Q4 despite RIL's dip
The Economic TimesImage: The Economic Times
In the March 2026 quarter, India's corporate sector reported a 13% year-on-year increase in net profit, driven by strong performances in banking and finance, despite a 12.6% profit drop from Reliance Industries (RIL). Revenue also rose by 9%, marking the highest growth in seven quarters.
- 01Aggregate net profit for a sample of 159 companies rose 13% year-on-year.
- 02Reliance Industries' profit fell 12.6%, impacting overall profit growth.
- 03Banking and finance sectors contributed significantly to profit growth.
- 04Revenue growth reached 9%, the highest in seven quarters.
- 05IT companies saw a 12.9% increase in net profit, benefiting from currency fluctuations.
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The early results for India's corporate sector in the March 2026 quarter indicate a 13% year-on-year increase in aggregate net profit for a sample of 159 companies, significantly up from 2.6% in the same quarter last year. This growth is attributed to a low year-ago base and strong performances from banking and finance companies, which helped offset the 12.6% profit decline reported by Reliance Industries (RIL). RIL's net consolidated profit fell to ₹16,971 crore despite a 12.9% rise in net sales to ₹3.3 lakh crore. Excluding RIL, the sample's net profit grew at a faster rate of 17.6%. Overall revenue increased by 9%, marking the highest growth in seven quarters. The banking and finance sectors were key contributors, accounting for 28% of total revenue and 47% of net profit in the sample. Operating margins for the total sample contracted to 22.3%, while excluding lenders, the margin improved to 17.9%. IT companies also performed well, reporting a 12.9% increase in net profit, benefiting from a weaker rupee. As more companies release their results, analysts expect further clarity on the quarterly trends.
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The profit growth indicates a recovering corporate sector, which could lead to increased investments and job creation in key industries.
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