New Delhi, August 5, 2025: Indian companies appear to be turning a corner after grappling with a prolonged period of sluggish demand. While overall earnings growth for the June quarter remains muted, the opening months of FY26 have brought encouraging signs for corporate India.
The most promising indicator? A sharp decline in the number of loss-making companies and a noteworthy rise in firms that have returned to profitability, shifting from red to black. This reversal, though modest in scale, signals a potential inflection point for the economy.
Analysts believe this early improvement hints at a broader recovery on the horizon, bolstered by improving demand in select sectors, operational efficiencies, and cost optimisation efforts by companies.
If these green shoots continue to strengthen through the year, FY26 could well mark the beginning of a sustained turnaround for India Inc.
