Did Nifty-500 Earnings Surge 15% in Q2 Driven by Oil and Gas Stocks?
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Synopsis
Nifty-500 companies reported a notable 15% surge in earnings for Q2 FY26, the highest in five quarters. This growth was primarily fueled by the oil and gas sector, despite the backdrop of geopolitical challenges. Discover which sectors thrived and which struggled in this financial landscape.
Key Takeaways
- Nifty-500 earnings grew by 15% in Q2 FY26.
- Oil and gas stocks were major contributors to this growth.
- Excluding metals, earnings growth was only 9%.
- Midcap and smallcap stocks outperformed large caps.
- Cement sector saw a remarkable 211% increase in earnings.
Mumbai, Nov 20 (NationPress) The cumulative earnings of firms within the Nifty-500 category experienced a remarkable growth of 15 percent in Q2 FY26, marking the highest increase in five quarters, according to a report released on Thursday. Despite facing geopolitical challenges and sluggish consumption patterns, this growth was significantly propelled by the oil and gas sector, particularly by OMCs, which saw their EBITDA and PAT rise by 48 percent and 59 percent, respectively, as per Motilal Oswal Financial Services (MOFSL).
When excluding metals and oil and gas stocks, the overall earnings of the Nifty 500 universe only increased by 9 percent year-on-year. In contrast, when financial stocks are excluded, the Nifty 500 universe recorded a much stronger earnings growth of 20 percent YoY.
Overall sales, EBITDA, and adjusted PAT climbed to approximately Rs 35 trillion, Rs 8 trillion, and Rs 4 trillion respectively, reflecting increases of 8 percent, 12 percent, and 15 percent compared to the previous year.
The earnings growth was diverse across sectors, with non-banking financial companies (NBFCs) reporting a 21 percent increase; metals up by 18 percent; cement soaring by 211 percent; capital goods rising by 30 percent; telecom transitioning from a loss to profitability; retail advancing by 32 percent; and real estate climbing 22 percent.
Cement companies reported their second consecutive strong quarter following previous weak performances, with sales and EBITDA rising by 18 percent and 49 percent YoY, respectively, and reported earnings up by a striking 3.1 times compared to last year.
The chemicals and consumer durables sectors also showed robust growth from a low baseline, while the automobile sector declined by 16 percent, private banks fell by 3 percent, and media dropped by 10 percent.
Ferrous companies thrived due to increased volumes and lower costs; non-ferrous gains were bolstered by favorable metal prices and stable volumes.
Both midcap and smallcap stocks outperformed, with Midcap-150 earnings climbing by 27 percent and Smallcap-250 by 37 percent. The relative underperformance of large-cap stocks was attributed to weaknesses in private banks and the automobile sector, according to the report.
Point of View
The growth in Nifty-500 earnings amidst challenging conditions speaks volumes about the resilience of various sectors. While oil and gas stocks lead the charge, the diverse performance across industries reflects a nuanced economic landscape. At NationPress, we remain committed to providing insights that matter.
NationPress
20/11/2025
Frequently Asked Questions
What drove the growth in Nifty-500 earnings?
The growth in Nifty-500 earnings was significantly driven by the oil and gas sector, particularly OMCs, which reported substantial increases in EBITDA and PAT.
How did the different sectors perform in Q2 FY26?
Sectors like cement and NBFCs showed remarkable growth, while automobiles and private banks faced declines.
What is the significance of this earnings growth?
This earnings growth indicates resilience in certain sectors despite geopolitical headwinds and weak consumption trends.
