Poor performance in the construction, industrial raw materials and investment sectors led to moderation in Indian Inc.’s revenue growth, CRISIS Market intelligence and observed analyses.

Revenue growth for the three months ended September stood at 5-7%, according to the market intelligence company. India Inc. experienced a significant deceleration in revenue growth during the period July-September termmarking the slowest pace in the last 16 quarters.

Sectors such as construction and industrial raw materials grew by just 1%, weighing heavily on overall revenue expansion. Agriculture, which includes fertilizers and accounts for 2% of sample income, saw a sharp decline of 20-22%. The export segment, which represents approximately 22% of the sample, grew modestly by 5%, while “other” verticals, including aluminum, grew by 4%.

Reacting to the findings of the observations, Elizabeth Master, Associate Research Director, CRISIL Market Intelligence and Analytics, commented: “Among the top 10 sectors, which account for 75% of revenue, eight saw Increase in EBITDA marginled by export-related sectors such as IT services and pharmaceuticals, investment-related sectors such as electricity and consumer discretionary sectors such as automobile and telecommunications services. The two sectors that saw margin contraction are steel, due to rising iron ore prices, and cement, due to subdued prices. »

In contrast, the consumer discretionary, staples and services sectors posted solid growth of 15%, contributing about 36% of the sample’s revenues. Interestingly, despite the slowdown in revenue, corporate profitability held up, according to the analysis.

It further estimates that overall corporate EBITDA increased by approximately 10% in the second quarter of fiscal 2025, with an estimated EBITDA margin between 21 and 21.5%. Among the top 10 industries, accounting for nearly 75% of total revenue, eight saw an increase in EBITDA margin, according to the market information company.

Going further, it expects the margin to further improve by 50 to 150 basis points in fiscal 2025, driven by lower commodity prices and increased revenue growth based on the volume.