Page 39 - CII-ARTHA

MARCH 2026

CORPORATE SECTOR PERFORMANCE:

FAST REVENUE GROWTH, BUT COST

PRESSURES ARE BUILDING

I India’s listed non-financial corporate sector quarter notable is not just the revenue acceleration
but the ability of firms to hold margins near 9.5 per
recorded revenue growth of 9.6 per cent in
Q3FY26, marking a strong expansion despite
on y-o-y basis a sharp jump from 5.1 per cent in
mounting cost pressures and global trade tensions. cent despite total expenses rising by 8.7 per cent
Overall, the quarter reflects resilient corporate Q2FY26.
performance, though emerging cost headwinds could
weigh on margins going forward. Revenue growth was strong, but the bigger story of
Q3FY26 was the sharp rise in costs. Total
expenses rose 8.7 per cent on y-o-y basis, nearly
Overall Performance double the 5.1 per cent rate in Q2FY26. The

acceleration was broad-based, with raw material
An analysis of a balanced panel of 2,680 listed costs and wages, moving higher simultaneously.
non-financial companies (excluding oil & gas) shows
that the performance reflects a corporate sector that
remains resilient, underpinned by stable credit growth,
government capital expenditure, and sustained Net sales grew 9.6% in
consumption. These factors have helped firms Q3FY26; margins steady,
maintain growth despite rising costs. What makes the but cost pressures rising

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