ICRA forecasts operating margin contraction for listed companies in Q2 FY2027
What happened
ICRA expects aggregate operating margins for its sample of 2,756 listed companies to contract by 100-150 basis points year-on-year in Q2 FY2027. This forecast comes as companies face mounting cost pressure, even as revenue is projected to grow in the low to mid-teens. Margins had previously contracted by 171 basis points.
From indiatimes.com
Why it matters
The mounting cost pressure is expected to contract operating margins across various sectors. This trend suggests reduced profitability for companies, despite continued revenue growth in the low to mid-teens.
From indiatimes.com
Who's involved
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Reserve Bank of IndiaSpeculative
Companies in the sample of 2,756 listed companies could see their operating margins contract due to mounting cost pressure.