Indian companies post strong Q2 FY27 revenue and profit growth, Moody's says

what happened

According to Moody's, 2,864 Indian companies that reported results through November 12 lifted revenue by 23% and adjusted profit after tax by 29% year-on-year in Q2 FY27. Excluding banks and financial services, growth reached 26% and 34%. Excluding refineries, which benefited from global shortages of diesel and other refined products, adjusted profit still rose 25% and revenue 23%.

Cost inflation was sharp, particularly in coal, power, logistics, steel and copper. Gross margins fell 257 basis points year-on-year, but strong volume growth improved operating leverage and lifted EBITDA margins by 30 basis points. Banks reported stronger credit growth and better asset quality, while refineries swung from an 80% profit decline in Q1 to a 60% increase in Q2.

why it matters

For markets, the report signals that Indian corporate earnings remain resilient despite geopolitical uncertainty and rising costs. Moody's warns that refining margins could contract in Q3 as crude prices fall, while IT firms continue to face pricing pressure as clients use AI to cut costs.

market impact

Indian equities: strong earnings across most sectors support the market, while IT and some consumer names face pressure

• ▲Indian equities (Nifty 50) pressure up — strong profit growth across most sectors supports valuations
• ▼Indian IT companies pressure down — pricing pressure and AI-driven cuts in client spending weigh on revenue

instruments