Festival Boost: India Inc Braces for Revenue Surge Amid Challenges

ICRA predicts sequential revenue growth for India Inc in the December quarter, driven by rural demand, government spending, and festival season. Challenges like uneven urban demand and global uncertainties could impact H2 growth. Operating profit margins are expected to rise, improving credit metrics.

India's corporate sector is set to experience a rise in revenues in the December quarter, largely fueled by improved rural demand, increased government expenditure, and the festive season, according to leading agency ICRA.

Despite these promising factors, the company identifies potential challenges that could dampen the growth trajectory in the latter part of the fiscal year, including uneven urban demand and global uncertainties.

Furthermore, operating profit margins are poised for improvement, which is likely to lead to better credit metrics, as indicated by an increase in the interest coverage ratio during the October-December period of FY25.

(With inputs from agencies.)