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PL Capital (Prabhudas Lilladher), one of India’s oldest full-service financial services groups established in 1944, today released its Q1FY27 corporate results review compiled by PL Research, the group’s Institutional Equities research desk. The review, spanning 216 listed companies across 26 sectors, finds that India Inc. delivered its strongest revenue growth in several quarters, even as profitability growth remained comparatively muted amid margin pressures in select sectors.

PL Research’s coverage universe reported revenue, EBITDA and PAT growth of 21.0%, 1.5% and 1.0% YoY respectively in Q1FY27 — the fastest pace of topline growth since Q4FY24. In absolute terms, aggregate revenue came in at Rs 26,168 bn, EBITDA at Rs 5,104 bn and PAT at Rs 2,832 bn. Actual earnings also came in well ahead of Street estimates, with revenue, EBITDA and PAT beating estimates by 3.1%, 13.8% and 24.2% respectively.

While topline growth remained healthy across the board, profitability growth was largely muted amid margin pressures across several sectors — most visibly in Oil & Gas and select financial services names, which weighed on aggregate profit growth even as demand across the broader economy stayed resilient. Excluding BFSI, EBITDA grew a modest 1.0% YoY while PAT declined 3.4% YoY; adjusting further for Oil & Gas — where sharp swings in refining and marketing margins distorted the aggregate — EBITDA and PAT growth improves to 9.6% and 17.0% YoY respectively, pointing to healthier underlying profitability once these two heavyweight, volatile segments are excluded.

Broad-based growth across sectors: Ten sectors — Auto, Chemicals, Consumer Durables, EMS, Financial Services, Healthcare, Logistics, Oil & Gas, Renewable Equipment and Textiles — reported revenue growth of more than 20% YoY. Telecom, Ports, Metals & Mining, Travel & Tourism and Education also posted healthy double-digit revenue growth.

Profitability led by Chemicals, EMS and Textiles: Building Materials, Chemicals, Consumer Durables, EMS, Financial Services, Healthcare, Metals & Mining and Textiles reported EBITDA growth of over 20% YoY, with Textiles (45.7%), EMS (40.5%) and Chemicals (39.0%) leading the profitability charts.

Metals & Mining tops PAT growth: At the bottom line, Building Materials, Capital Goods, Chemicals, Consumer Durables, EMS, Financial Services, Metals & Mining, Telecom and Textiles delivered PAT growth of over 25% YoY. Metals & Mining posted the highest PAT growth among major sectors at 47.6%, followed by Building Materials (46.7%) and Textiles (45.4%).

Where the Street was most wrong-footed: The widest estimate misses came in Oil & Gas, where sector EBITDA beat estimates by a sharp 122.7% (aided by a weak year-ago base and inventory-linked swings), and in Travel & Tourism, where PAT missed estimates by 71.6%, dragged down by a steep earnings decline at InterGlobe Aviation. Chemicals was the most consistent positive surprise, beating revenue, EBITDA and PAT estimates by 14.1%, 31.3% and 44.1% respectively.

Commenting on the findings, Amnish Aggarwal, Co-Head – Institutional Equities, PL Capital, said:

“Q1FY27 numbers confirm that demand on the ground remains steady, with revenue growth across corporate India at its highest in several quarters. What growth is the breadth of this growth — it isn’t confined to one or two pockets, but visible across sectors as varied as chemicals, EMS, healthcare and financial services.

Profitability growth was comparatively softer, largely on account of margin pressures in commodity-linked and financial services segments. That said, the underlying strength in sectors like Chemicals, EMS and Textiles gives us confidence in the durability of this cycle.”

- Amnish Aggarwal, Co -Head of Institutional Equities, PL Capital (Prabhudas Lilladher)

Sector-wise Performance — Q1FY27 YoY Growth

Notable Company Highlights

•     BHEL (Capital Goods): swung to an EBITDA and PAT profit of Rs 50.4 bn and Rs 38.2 bn respectively, against losses in Q1FY26, on a 40.3% YoY jump in revenue — one of the sharpest turnarounds in the quarter.

•     PNC Infratech (Infrastructure): PAT grew 235.3% YoY to Rs 27.1 bn, with EBITDA up 149.7% YoY, comfortably the standout performer in the roads and infrastructure space.

•     Deepak Nitrite (Chemicals): PAT more than tripled, up 207.4% YoY, on a 36.4% YoY revenue increase and sharply improved margins, reinforcing the sector’s status as this quarter’s strongest profitability story.

•     ITC (Consumer): was among the quarter’s notable laggards, with revenue down 14.4% YoY and PAT down 27.1% YoY, contributing to the Consumer sector’s flat overall profit growth.

•     InterGlobe Aviation / IndiGo (Travel & Tourism): swung to a near break-even loss from a Rs 23.2 bn profit a year earlier, as EBITDA fell 33.4% YoY — the single largest drag on the Travel & Tourism sector’s numbers.

Q1FY27 Snapshot: PL Research Coverage Universe

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