New Delhi, Feb. 20 -- India Inc's December-quarter earnings reflected a festive boost that was strong but selective. It also hinted that the easy phase of margin-led profit growth may be over.

Mint's analysis of 3,905 companies showed headline revenue rose 10% year-on-year in Q3FY26, the fastest pace in seven quarters. Net profit growth, however, was the slowest in five quarters at 11%, widening the gap between topline momentum and bottomline expansion.

The divergence came despite volume growth hitting a six-quarter high, aided by modest non-core income growth. Consumers responded to recent goods and services tax cuts, festive demand and earlier income tax reductions, unlocking discretionary spending, particularly in automobiles and con...