This marked the seventh consecutive quarter of single-digit year-on-year revenue growth. Operating profit of Indian companies grew by 9.5 percent, marking the fastest increase in three quarters. Raw material costs fell 3.8 percentYoY in Q3, the steepest drop in 13 quarters, and declined over 8 percentQoQ. On sectoral fronts, experts said the auto sector experienced a weak performance, with profits declining by 2% year-over-year. Management’s outlook for FY26 demand remained uncertain, citing signs of moderation across various segments. However, there was a more optimistic view regarding rural demand, which is expected to outpace urban demand. The IT sector exhibited a mixed performance in what is traditionally a seasonally weak quarter. The healthcare sector stood out with a robust 25% earnings growth reinforcing its strong position amid broader market challenges. Meanwhile, some brokerages anticipate that the recovery path may be weaker going forward. According to a recent Kotak Institutional Equities report, India’s macroeconomic outlook has weakened driven by a recent slowdown in consumption, particularly of basic staples.
