Highlights:
- The corporate performance of the non-financial firms softened in Q2 FY25 as net sales further slowed, and profitability contracted more deeply.
- The moderation in the sales growth can be attributed to a weakening urban consumption demand and sluggish external demand.
- Sectors such as capital goods, telecom, white goods, pharmaceuticals, logistics, and retailing performed well.
- While sales and profitability for Indian firms remained subdued in Q2 FY25, we anticipate improvement in the coming quarters.
- It is crucial to monitor any external risks associated with geopolitical tensions, commodity price shocks, and weather events.
