India’s corporate environment witnessed an impressive upswing in Q3 of FY2025–26, marking its strongest performance in nearly six years. Major sectors including FMCG, banking, automobiles, and IT posted higher-than-expected profits despite global volatility. Analysts attribute this rise to a resurgence in domestic consumption, increased festival-season spending, and improved rural purchasing power supported by government schemes and digital banking penetration.

Meanwhile, mid-sized firms benefited from easier credit access through digital lending platforms and relaxed compliance norms for MSMEs. This financial flexibility allowed them to scale operations, upgrade technology, and enter new markets previously dominated by large competitors. The National Credit Guarantee Scheme also contributed by encouraging lenders to support businesses aggressively.

Large enterprises also reported that cost optimization, automation, and strategic diversification played a significant role in boosting profitability. With AI-driven processes being integrated across logistics, finance, and customer engagement, companies reduced operational expenses while expanding output capacity. This shift toward automation has rapidly changed workforce dynamics, leading to a demand for more skilled roles over traditional ones.

Looking ahead, corporate leaders remain cautiously optimistic. While global challenges such as supply chain disruptions and fluctuating commodity prices still pose risks, India’s growing consumer base and strong service economy are expected to keep the business cycle buoyant. Market analysts predict that with steady policy support, FY2026 may become one of the best-performing years for India Inc.