Corporate revenues jump most in six quarters on GST push

Corporate revenues in India experienced a significant surge in the last quarter of 2025, marking the highest growth in six quarters. This increase is largely attributed to the implementation of major goods and services tax (GST) reforms that have positively impacted sectors such as automotive, energy, metals, and financial services. As a result, India Inc has enjoyed double-digit profit growth for six consecutive months. According to a sample of 3,723 companies analyzed, revenues rose by 9.8% and net profits by 13.5%, demonstrating a robust recovery despite challenges posed by revised labor codes affecting the technology outsourcing sector. Analysts predict that this trend will continue into FY27, supported by favorable trade deals that enhance export opportunities. Notably, mid- and small-cap companies have shown stronger profit growth compared to larger entities, indicating a shift in earnings momentum. However, operating margins have slightly contracted, reflecting ongoing pressures, particularly in the banking sector. Overall, while growth rates are promising, sectoral dynamics suggest a differentiated outlook for various industries in the coming quarters.