India Services: Growth Is Real; Transport Owns the Margin Problem

The fuller panel reverses the old sector downgrade: commercial services are strong while transport is weak.

Analyst memo

The prior note is marked to the substantially loaded Q1 tape. The sector is not broken; the earnings problem is concentrated in transport. The exhibit separates aggregate, median, sub-industry and coverage evidence.

The note this updates

India Services Update: Revenue Was Fine, PAT Quality Was Not · June 30, 2026

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Executive Summary

On one aligned company cohort, Q1 revenue grew +25.2%, EBITDA grew +9.8% and PAT grew +4.5%; operating margin changed -2.13pp. The same-store aggregate compares with median-company revenue of +11.3% and median PAT of +6.6%. The Q1 FY2027 revenue-loaded coverage set contains 360 companies, or 88.0% of the sector's 409 classified names. Those reporters represented 96.8% of all loaded Q1 FY2026 revenue for that fixed universe. This is loaded analytical coverage, not regulatory filing completeness.

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