New Delhi

IndiaInc’s revenue growth accelerated to 11–11.5 per cent year on year in the Q1 FY27, marking the fastest pace in two years, a new report has said.

Strong domestic demand and price hikes offset the impact of higher input costs triggered by the West Asia conflict, helping corporates to maintain strong growth rate, the report from ratings agency Crisil Ratings.

Even as supply disruptions in West Asia pushed up fuel, freight, packaging and feedstock costs, the resilient domestic demand helped companies across sectors to pass on a part of the higher costs to consumers. Sehul Bhatt, Director, Crisil Intelligence said revenue growth in the past two years was powered largely by volume. “But this time around, pricing was the primary driver, contributing more to revenue growth than volume in sectors such as aluminium, steel, cement, airlines, fertilisers, and gems and jewellery,” Bhatt said.

Growth was uneven across industries, but broad-based enough to lift aggregate corporate revenues, he added. India Inc’s revenue grew 9.6 per cent in the fourth quarter of FY26. The report was based on Crisil’s analysis of more than 400 listed companies across 47 sectors, excluding banking, financial services, and oil and gas.

The automobile sector led revenue growth, at 22-24 per cent year-on-year, supported by GST-led demand, healthy passenger vehicle and two-wheeler sales, stronger commercial vehicle demand, export growth and selective price increases.