Indian corporations posted stable financial performance in the fourth quarter of FY25 despite global economic pressures, with signs pointing to a potential recovery in FY26 as consumption picks up. According to a Bank of Baroda (BoB) report, aggregate net sales among 1,893 companies grew by 5.4%, while net profits rose 7.6% in Q4.
Economist Aditi Gupta noted that infrastructure-linked industries continued steady expansion despite base effects, while consumer sectors, including FMCG and durables, benefited from strong rural and seasonal demand. Services industries also maintained momentum, reinforcing positive market sentiment despite global headwinds.
Gupta cited stable commodity prices, low inflation, monsoon forecasts, trade agreements, government capital spending, and tax incentives as key drivers supporting growth. Meanwhile, corporate expenditure and interest costs remained muted, improving debt serviceability.
Moderation in sales was seen in sectors such as oil and gas, textiles, and iron and steel, though BoB suggested this was temporary rather than structural. The BFSI segment also faced some slowdown, attributed to slower credit growth following a strong performance last year.
Despite a volatile global trading environment, India’s corporate sector demonstrated resilience, with operating and net profits rising by 8.2% and 7.6%, respectively, on a high base of 20.7% and 14.3% last year.
The report highlighted that 24 industries recorded higher-than-average net sales growth, surpassing the 5.4% sample mean, while 16 sectors reported PAT growth exceeding the 7.6% average, reinforcing expectations for continued recovery heading into FY26.
