Mumbai, Feb 22 (IANS) India Inc delivered its strongest earnings performance in the past eight quarters in the third quarter of FY26, driven by broad-based sectoral growth and improving demand trends, a new report said on Sunday.
The data compiled by Motilal Oswal Financial Services said that aggregate earnings of the Nifty 500 universe rose 19 per cent year-on-year in 3QFY26.
Excluding financial stocks, earnings growth stood even higher at 23 per cent. If metals and oil & gas companies are excluded, aggregate earnings still grew a healthy 15 per cent, showing strength across sectors.
Sales growth also improved sharply. Aggregate sales of Nifty-500 companies increased 11 per cent year-on-year, marking the highest growth in the last 11 quarters.
During the quarter, total sales stood at around Rs 36 lakh crore, while EBITDA and adjusted profit after tax came in at about Rs 8 lakh crore and Rs 4 lakh crore, respectively.
The report highlighted that commodities were at the forefront of earnings growth. The oil & gas sector recorded a 38 per cent jump in profits, while metals saw 34 per cent growth on a softer base.
Public sector banks posted 18 per cent growth, and NBFC lending companies reported a 19 per cent rise in profits.
The automobile sector, excluding tractors and passenger vehicles, saw profit growth of 27 per cent, supported by festive demand and the impact of GST rate cuts.
Capital goods companies reported 24 per cent earnings growth, backed by strong order inflows and government spending in power transmission, defence and renewable energy.
The cement sector also staged a strong comeback, reporting 46 per cent growth in profits after several weak quarters.
Demand recovery of around 7–8 per cent helped boost performance. The telecom sector more than doubled its profits to Rs 31 billion during the quarter.
Mid- and small-cap companies outperformed during the quarter. Earnings of the Nifty Midcap-150 companies grew 20 per cent year-on-year, while Smallcap-250 companies posted 26 per cent growth on a softer base. In comparison, earnings of Nifty-100 companies rose 18 per cent.
–IANS
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