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Operating Profits Improve Despite Slower Sales Momentum
India’s corporate margins improved even as sales growth slowed, supported by higher operating efficiency and stronger GST collections.
Broader economic indicators presented a mixed picture toward the end of 2025. BSE500 companies reported December-quarter net sales growth of 4.1%, the slowest pace in five quarters, reflecting cautious demand conditions. However, operating profit rose 9.5%, and net profit increased 17%, driven by margin expansion and cost efficiencies. GST collections grew 12.3% year on year in January 2025, signaling stronger economic activity in December. Global markets closed 2025 on firmer footing despite persistent trade and policy uncertainty.