India Inc. reported strong earnings growth in the fourth quarter of FY26, driven by broad-based outperformance across most sectors. Healthy earnings momentum was led by BFSI, Metals, Oil Marketing Companies (OMCs), Technology, Telecom, and Automobiles, while the Oil & Gas sector (excluding OMCs) weighed on overall profitability.
According to Motilal Oswal Financial Services, companies under its coverage reported aggregate earnings growth of 16% year-on-year (YoY), significantly surpassing expectations of 8% growth in Q4FY26.
The stronger-than-expected performance was primarily driven by the BFSI sector, where profits rose 18% YoY against estimates of 11%. This was further supported by the Metals sector, which posted a robust 50% YoY profit growth versus expectations of 24%, and OMCs, where profits surged 62% YoY compared with the brokerage’s estimate of 7% growth.
Nifty 50’s 8th quarter of single-digit PAT growth
The companies in the Nifty 50 index delivered an average net profit growth of 4% YoY in Q4FY26, its single-digit earnings growth for the eighth consecutive quarter, as compared with the estimates of 2% growth. Within the , a total of 15 companies reported lower-than-expected profits, while 18 posted a beat, and 17 registered in-line results.
Barring , which posted a profit dip of 13% YoY, and InterGlobe Aviation, which posted a loss, the Nifty 50 companies posted a 9% YoY earnings growth.
Five Nifty companies – , JSW Steel, HDFC Bank, Infosys, and Tata Consultancy Services (TCS) – contributed 75% of the incremental YoY accretion in earnings. Conversely, Reliance Industries, , , PowerGrid Corporation, Dr Reddy’s Laboratories, Cipla, Tata Motors Passenger Vehicles, Sun Pharmaceutical Industries, and dragged down earnings, Motilal Oswal said.
Nifty 50: Winners and Losers
The top three companies in the Nifty 50 index with high net profit growth during the March quarter were , JSW Steel and Tata Steel.
High PAT Growth
Eternal: The food delivery and quick commerce major reported the strongest net profit growth, with PAT surging 346% YoY in Q4FY26, significantly outperforming expectations. Revenue growth remained healthy at 196%, while EBITDA jumped 575% YoY.
JSW Steel: The JSW Group steel manufacturer posted a robust 118% YoY net profit growth in Q4, aided by improved metal prices and margin expansion. Revenue during the quarter grew 14% and EBITDA increased 50% YoY.
Tata Steel: delivered 81% YoY growth in net profit, with revenue rising 13% YoY.
Other companies with high net profit growth include (M&M), Shriram Finance, Bharti Airtel, Apollo Hospitals, Tata Consumer Products, , , Titan Company, Nestle India, Trent, Bajaj Finance, Infosys and Ultratech Cement.
Low PAT Growth
Adani Ports & SEZ: The Adani group firm reported modest profit growth of 16% YoY, with sales and EBITDA growth of 26% and 20% YoY, respectively.
Tech Mahindra: Tech Mahindra’s net profit rose 15% YoY, while its revenue grew 13% YoY.
Kotak Mahindra Bank: The private lender posted 13% YoY growth in PAT, supported by steady loan growth and stable asset quality.
Other companies with medium to low PAT growth in Q4FY26 include Bajaj Finserv, TCS, , Coal India, , HDFC Bank, ICICI Bank, ITC, NTPC, State Bank of India (SBI), Hindustan Unilever, Bharat Electronics, , HCL Technologies, HDFC Life Insurance Company and ONGC.
Negative PAT Growth
Dr Reddy’s Laboratories: Pharma major reported a 86% YoY fall in Q4FY26 net profit, hurt by an impairment charge linked to its discontinued cancer therapy program.
Cipla: The drug major’s net profit declined 54% YoY, while its revenue during the March quarter dropped 3% YoY.
Power Grid Corporation of India: The state-run firm’s net profit before deferred tax adjustment plunged 24% YoY, while its revenue also fell 9% YoY.
Axis Bank, SBI Life Insurance Company, , Max Healthcare Institute, , Maruti Suzuki India, Reliance Industries, Jio Financial Services and Sun Pharmaceutical Industries also recorded a fall in net profit.
Nifty EPS Growth
Nifty EPS for FY26 ended at ₹1,065, up 5% YoY, a second consecutive year of single-digit growth.
Brokerage firm Motilal Oswal cut its FY27 Nifty EPS estimates by 0.9% to ₹1,235 from ₹1,246 earlier, led by SBI, Reliance Industries, JSW Steel, , and Coal India.
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