Indian Mid- and Small-Cap Firms Outperform Large Caps on Margins Despite Rising Costs

Midcap, small cap outperform large caps on margins amid rising input costs

Large-cap firms saw operating margins contract significantly year-on-year. Mid- and small-cap companies experienced lesser margin contractions amid rising costs. These smaller firms also achieved higher revenue and net profit growth rates. Large-cap companies reported modest net profit growth, the slowest in seven quarters. Overall, aggregate operating margins for India Inc. declined.