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 Nifty 50, a total of 15 companies reported lower-than-expected profits, while 18 posted a beat, and 17 registered in-line results.
Barring Reliance Industries, 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 – Bharti Airtel, JSW Steel, HDFC Bank, Infosys, and Tata Consultancy Services (TCS) – contributed 75% of the incremental YoY accretion in earnings. Conversely, Reliance Industries, InterGlobe Aviation, Adani Enterprises, PowerGrid Corporation, Dr Reddy’s Laboratories, Cipla, Tata Motors Passenger Vehicles, Sun Pharmaceutical Industries, and Maruti Suzuki India 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 Eternal, 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: Tata Steel delivered 81% YoY growth in net profit, with revenue rising 13% YoY.
Other companies with high net profit growth include Mahindra & Mahindra (M&M), Shriram Finance, Bharti Airtel, Apollo Hospitals, Tata Consumer Products, Asian Paints, Bajaj Auto, 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, Eicher Motors, Coal India, Hindalco Industries, HDFC Bank, ICICI Bank, ITC, NTPC, State Bank of India (SBI), Hindustan Unilever, Bharat Electronics, Larsen & Toubro, 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, Wipro, Max Healthcare Institute, Tata Motors Passenger Vehicles, 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, ONGC, and Coal India.
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