ICRA says that the Impia Inc operating margin is improving in Q4. Geopolitical tensions affect the feelings of demand

India Inc. is expected to be expected By reporting a stable growth in revenue in the first quarter of 2012, with the support of flexible domestic demand, according to ICRA. The classification agency said, in a report, that although it is expected that the rural demand is expected to be healthy, it seems that the demand in urban areas is ready, supported by mitigating income tax and relieving food inflation.

However, continuous geopolitical tensions still affect the feelings of demand, especially for sectors directed towards export such as agricultural chemicals, textiles, car components, cars, broken and polished diamonds, and information technology services.

An analysis conducted by ICRA showed that India Inc recorded 7.6 % on an annual basis in revenue for the quarter ending in March 2025. Sectors such as oil, gas, shipping and the port cleared serial expansion and margin at some point due to high input costs and lower perceptions.

ICRA also said that the rural demand continued the scene in an improvement in Q4 FY2025. On the basis of QOQ, revenue growth remained modest by 6.2 %, led by slow urban demand. ICRA expects the demand in the sectors to be directed to consumption will remain flexible due to the reduction of large income tax, cash dilution by RBI, and moderation expectations in enlarged food.

The classification agency also said that the operating profit margin of INC Inc in Q4 FY2025 improved 63 basis points on an annual basis and 41 basis points on a serial basis due to improving demand across sectors such as energy, airlines and real estate, along with moderation in the costs of inputs and the benefits of operational influence.

In general, the operational profit margin in India reached 18.5 % in Q4FY25, compared to 18.1 % for the quarter -quarter ended in December 2024 and 17.8 % in the corresponding quarter of last year.

Moving forward, ICRA said that government spending, as well as capturing urban demand, will remain a major observer in the next seasons. Moreover, the INDIA Inc. ability. To move in uncertainty in economic and geopolitical environments is still decisive.

ICRA said: “With the MPC (MPC), the reduction in the rate of 50 basis in the June 2025 (100 basis points in total since February 2025) is expected to improve India Inc’s interest coverage to about 5.1-5.2 times in the first quarter of 2012,” said Icra.

The study on a group of 578 companies, with the exception of the fiscal sector entities, showed that the total debt in India Inc amounted to 20.60 rupees in the fiscal year 25 compared to 20.16 rupees a year ago. The number was at 18.66 Cham rupees in the 21st fiscal year.

“With the facilitation of inflationary pressures on profits, in the 2015 fiscal year, the India Inc was able to reduce a significant increase in borrowing levels. Some sectors such as energy, iron, steel, oil, gas and sugar have witnessed an increase in debt levels due to the increase in the severity of working capital, where the net is strengthened in the field of classification.