New Delhi, Sep 2 (IANS) Indian corporate firms kicked off FY27 on a strong note with revenue growth accelerating to its highest level in several quarters and companies comfortably outperforming expectations, according to a report released on Wednesday.

An analysis by PL Capital showed aggregate revenue growth of 21 per cent year-on-year in the June quarter which is the fastest topline expansion since Q4FY24.

Revenue for the coverage universe stood at Rs 26.17 lakh crore, while EBITDA and profit after tax (PAT) grew 1.5 per cent and 1 per cent, respectively, it added.

Notably, actual performance exceeded analyst expectations across key metrics. Revenue beat estimates by 3.1 per cent, EBITDA by 13.8 per cent and net profit by 24.2 per cent, highlighting stronger-than-anticipated business activity and earnings resilience.

The report pointed to a broad-based recovery across sectors rather than growth concentrated in a few pockets.

Ten sectors -- including automobiles, chemicals, consumer durables, electronics manufacturing services (EMS), financial services, healthcare, logistics, oil & gas, renewable equipment and textiles -- recorded revenue growth of more than 20 per cent year-on-year, the report said.

Meanwhile, chemicals, EMS and textiles emerged as the standout performers on profitability and textile companies reported EBITDA growth of 45.7 per cent, followed by EMS at 40.5 per cent and chemicals at 39 per cent.

At the bottom line, metals & mining led with PAT growth of 47.6 per cent, closely followed by building materials at 46.7 per cent and textiles at 45.4 per cent. Similarly, several sectors such as capital goods, financial services, telecom and consumer durables posted profit growth exceeding 25 per cent.

However, overall profit growth remained muted amid weakness largely due to margin pressures in energy and parts of the financial services sector.

Excluding BFSI companies, EBITDA growth stood at 1 per cent while net profit declined 3.4 per cent.

Amnish Aggarwal, Co-Head, Institutional Equities at PL Capital said the June quarter results reaffirm the resilience of domestic demand and the breadth of India's growth cycle.

"Q1FY27 numbers confirm that demand on the ground remains steady with revenue growth across corporate India at its highest in several quarters. What stands out is the breadth of this growth. It isn't confined to one or two pockets, but is visible across sectors as varied as chemicals, EMS, healthcare and financial services," he said.

Aggarwal added that while profitability growth was affected by margin pressures in commodity-linked and financial services businesses, the strength seen in sectors such as chemicals, EMS and textiles reinforces confidence in the durability of the ongoing growth cycle.

Additionally, the report showed that despite margin pressure, corporate India's earnings trajectory remains supported by resilient demand, broad-based sectoral participation and stronger-than-expected operational performance.

--IANS

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