Corporate India’s profit after tax increased at a pace of 11% to ₹19,62,314 crore in the first quarter of fiscal 2026, according to a report by Bank of Baroda Research. PAT grew at a slightly faster pace of 11.3% in the year ago period .
Net sales increased 4.9% to ₹28,33,645 crore in the reporting quarter. This growth rate is significantly slower than that of Q1FY25, when sales grew 10.6%, according to the data in the report. The net expenditure growth slowed to 4.3% to ₹21,59,897 crore in the June quarter of the current fiscal. This is much slower than 8% in the same quarter a year before. “RBI’s decision to lower rates resulted in significant deceleration in interest costs for companies, with several sectors noting an improvement in their debt serviceability capacity,” wrote Aditi Gupta , Economist at BoB research and the author of the report. She, however, said that the performance was diverse across sectors.
“A normal monsoon, festive demand, low inflation, reduction in interest rates as well as income tax benefits should help support a recovery in demand. Infrastructure and linked sectors will continue to benefit from government’s capex push. Export oriented sectors have navigated the challenging external environment reasonably well and remain well-positioned to face any future challenges. At the same time, services linked industries continue to post a steady growth performance. This suggests that we can expect a gradual improvement in the next few quarters,” Ms. Gupta added.
Published – August 28, 2025 10:28 pm IST
