New Delhi, Oct. 28 -- Indian companies posted their fastest profit growth in over two years in the September quarter, but much of the gain came off a weak base, while surging oil, freight and metal prices threaten to squeeze margins from the December quarter.

Mint's analysis of 356 companies' standalone results shows that net profit rose 27% year-on-year in the September quarter (Q2 FY27), compared with a 9% increase in the year-earlier quarter. This was the cohort's strongest profit growth in 10 quarters, even as input expenses climbed to multi-quarter highs.

Elevated oil, freight and metal prices threaten to push up costs for companies across sectors in the coming months. While some businesses have raised prices to protect margins, th...