Corporate India is estimated to have recorded 6–7% year-on-year revenue growth in the October–December quarter (Q3FY26), broadly in line with the previous quarter, according to a Crisil Intelligence analysis of 600 companies that together account for over half of the NSE’s total market capitalisation. The growth was supported by strong performance in automobiles, cement, pharmaceuticals and aluminium, which together contribute over 20% of the total revenue of the companies analysed.
Auto Sector Drives Growth Momentum
The automobile sector is expected to have delivered the strongest performance, with revenue growth of around 13%, driven by healthy demand across passenger vehicles (PV), two-wheelers, commercial vehicles and tractors Passenger vehicle revenue likely surged 26%, supported by an estimated 22% rise in domestic volumes. The growth was aided by price rationalisation following GST rate reductions and deferred replacement demand from Q2, which boosted volumes in the December quarter.
Cement, Pharma and Aluminium Offer Support
The cement sector is estimated to have posted 9% revenue growth, underpinned by an expected 8% increase in volumes due to post-monsoon recovery and demand pick-up after the festive season. The pharmaceutical sector likely also recorded 9% revenue growth, supported by healthy export demand and stable domestic consumption.
For the aluminium sector, revenue is expected to have increased 8%, primarily driven by a 12% rise in prices, even as demand faced headwinds from lower export volumes following higher tariffs imposed by the US.
IT, Steel, Power and Construction Act as Drags
In contrast, four large sectors such as IT services, steel, power and construction which together account for more than one-third of total revenue, are expected to have weighed on overall growth. According to Pushan Sharma, Director, Crisil Intelligence,
“Revenue of the IT services sector is expected to have grown just 3%, primarily due to weak manufacturing-related projects amid lingering global uncertainties.”
Power sector revenue likely rose 3%, as renewable capacity additions reduced demand for coal-based power. Steel sector revenue growth is estimated at 2%, impacted by weak prices and subdued domestic demand, worsened by the absence of safeguard duties in November and December. Construction sector revenue is expected to have declined 2%, reflecting slower central infrastructure allocations.
EBITDA Growth Muted; Margins Under Pressure
Crisil estimates that EBITDA grew around 3% year-on-year during the quarter. However, EBITDA margins likely contracted by 50–100 basis points, largely due to pressure in key sectors such as automobiles, steel, construction and IT services.
Elizabeth Master, Associate Director, Crisil Intelligence, noted that four of the top 10 sectors are expected to report margin declines: Automobiles: Margin contraction of 50–100 bps, due to the lagged impact of 11% rise in aluminium prices in the previous quarter
Margin Expansion in Select Sectors
The remaining six sectors are expected to have reported margin expansion. The aluminium sector likely saw the sharpest improvement of 130–150 bps, supported by a steep fall in alumina prices, which more than halved during Q3FY26.
The telecom services sector is estimated to have expanded margins by 100–120 bps, driven by home broadband growth, higher ARPU from quality subscribers, capex efficiency and cost discipline. Meanwhile, the cement sector is expected to have logged 80–100 bps margin expansion, aided by stable input costs.
While India Inc continues to post moderate revenue growth, Crisil’s analysis highlights uneven sectoral performance and margin pressures amid cost inflation and global uncertainties. Going forward, sustained volume growth, commodity price stability and policy support will be key determinants of corporate profitability.