India Inc has delivered one of its strongest quarters in recent memory. An earnings review of 2,864 companies that had reported results by November 12 shows combined revenue from operations rose about 23 per cent year on year in the July to September quarter, while adjusted profit after tax climbed nearly 29 per cent. The numbers, published in a Business Line review on November 14, point to demand holding up well through the festive season, even as input costs stayed high and global conditions remained uncertain.
The September quarter is the second quarter of financial year 2026-27, and it is the first full read on how Indian companies are performing in the first half of the year.
Profits grew faster than sales
The headline numbers tell the story. Across the 2,864 companies in the review, revenue grew 23 per cent and adjusted profit after tax, which strips out one-off extraordinary items, grew 29 per cent compared with the same quarter last year. That gap matters. It means companies are not just selling more, they are keeping more of each rupee they earn, despite paying more for raw materials, power and logistics.
The picture stays strong even when the biggest groups are taken out of the sample. Excluding banking, financial services and insurance companies, aggregate revenue rose about 26 per cent and adjusted profit jumped around 34 per cent. And even after removing refineries, where firms benefited from global shortages of diesel and other refined products, revenue growth stayed at 23 per cent and profit growth at 25 per cent.
Steel, refineries and power led the way
The review points to steel, refineries and power as the strongest performers of the quarter. Banking, steel, petroleum refining, electricity generation and automobiles all reported healthy demand. Moneycontrol’s own analysis of earnings till November 5 reached a similar conclusion, finding net profit up 25 per cent across more than 1,500 firms, the highest in 12 quarters by one brokerage estimate, with small-cap companies growing fastest at 39 per cent.
Separate data also underlines how broad the recovery is. MarketsMojo’s review of the season found 56 per cent of companies reporting positive results, up from 53 per cent in the June quarter and 54 per cent in the March quarter, with large-cap companies doing best at 66 per cent positive surprises.
Margins are still under pressure
Not everything in the results was rosy. Cost inflation was sharp during the quarter, particularly in coal, power, logistics, steel and copper. Aggregate gross margins fell 257 basis points year on year, which means companies spent more on inputs for every rupee of sales than they did a year ago.
There is a silver lining here too. The margin squeeze was far smaller than the 470 basis point contraction seen in the June quarter, so the pressure is easing even if it has not gone away. Companies are also finding ways to protect profits, through better pricing, higher volumes and tighter cost control.
What the numbers say about demand
Strong corporate results usually mean one thing: people and businesses are spending. The September quarter covered the run-up to the festive season, when consumers buy cars, appliances, clothes and gold, and companies stock up ahead of Diwali. The 23 per cent revenue growth across nearly 3,000 companies suggests that spending held up despite high prices and global uncertainty.
What to watch next
The December quarter will be the real test. It will show whether the festive-season strength carried into the second half of the year, and whether companies can keep growing profits if input costs stay high. Analysts will also watch banks, IT and pharma closely, since those sectors showed slower growth in the early part of the season.
For now, though, the September quarter gives India Inc a solid base to build on. Revenue up 23 per cent, profits up 29 per cent, and gains spread across sectors rather than concentrated in one corner. After a choppy global year, that is a result worth noting.
FAQs
How many companies have reported September quarter results so far?
A total of 2,864 companies had reported by November 12, according to the Business Line earnings review published on November 14.
How much did Indian companies’ profits grow in Q2 FY27?
Adjusted profit after tax rose about 29 per cent year on year, while revenue from operations grew around 23 per cent in the July to September quarter.
Which sectors led the September quarter earnings?
Steel, refineries and power were the strongest performers, with banking, petroleum refining, electricity generation and automobiles also reporting healthy demand.
Did company margins improve in the September quarter?
No, aggregate gross margins fell 257 basis points year on year because of higher costs for coal, power, logistics, steel and copper, though the fall was smaller than the 470 basis point contraction in the June quarter.
Why does this quarter matter for the Indian economy?
It is the first full read on corporate performance in the first half of FY27 and a key signal of domestic demand, coming just as festive-season spending and record October exports pointed to a resilient economy.
India Inc will now look to the December quarter to see if this momentum can be sustained into the second half of the financial year.
