Now Reading: June quarter revenue surges but input costs squeeze profits
-
01
June quarter revenue surges but input costs squeeze profits
The June 2026 quarter saw double-digit revenue growth across Indian sectors, driven by sustained demand in automobiles and consumer goods, but profitability suffered from higher input costs. Maruti Suzuki's market share rose…
The Story in Brief
The June 2026 quarter saw double-digit revenue growth across Indian sectors, driven by sustained demand in automobiles and consumer goods, but profitability suffered from higher input costs. Maruti Suzuki's market share rose to 41.2%, and Bajaj Auto posted record export volumes of 7.3 lakh units. In banking, asset quality improved, with SBI reporting its lowest GNPA ratio in over two decades at 1.5% and a record net profit of Rs 21,121.2 crore.
However, margins contracted in key sectors. The automobile sector's margin fell 210 basis points to 14.4%, while cement firms excluding Ultratech and Shree Cement saw revenue drops. IT companies faced delays in project ramp-ups, and state-run oil marketers reported net losses due to under-recoveries. Outlook risks include adverse commodity prices and a potential deficient monsoon affecting rural demand.
The Indian Opinion
The media is framing this earnings season as a clash between strong demand and rising costs, but the real story is more nuanced. Sectors like automobiles and consumer goods show robust top lines, yet margin pressure from input costs is not uniform, cement and oil firms are hit harder. Instead of a simplistic 'demand vs. costs' narrative, watch how companies manage pricing power. The key test will be the next quarter's volume data: if rural demand weakens due to monsoon, will firms pass on costs without losing market share?
Source: economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
