Did Nifty-500 Achieve Its Highest Earnings Growth in 8 Quarters?
Synopsis
Discover how the Indian corporate sector achieved its highest earnings growth in 8 quarters, fueled by strong demand trends across various sectors. The latest report reveals significant profit increases in key industries, highlighting the resilience of India Inc. Join us in exploring the details of this impressive performance.
Key Takeaways
Nifty-500 earnings grew by 19 percent Sales increased by 11 percent Oil & gas profits rose by 38 percent Automobile sector saw 27 percent profit growth Mid-cap companies outperformed with 20 percent earnings growth
Mumbai, Feb 22 (NationPress) - The Indian corporate sector has reported its most impressive earnings performance in the last eight quarters during the third quarter of FY26, according to a recent report. This growth was fueled by widespread sectoral advancements and a notable improvement in demand trends.
The analysis conducted by Motilal Oswal Financial Services revealed that the cumulative earnings of the Nifty 500 index surged by 19 percent year-on-year in 3QFY26.
When excluding financial companies, the earnings growth escalated to 23 percent. Even when accounting for the omitted sectors of metals and oil & gas, the aggregate earnings still registered a robust 15 percent increase, indicating resilience across the board.
Sales figures also saw a significant uptick, with total sales for Nifty-500 organizations rising by 11 percent year-on-year, marking the highest growth rate in the past eleven quarters.
For this quarter, total sales reached approximately Rs 36 lakh crore, while EBITDA and adjusted profit after tax were about Rs 8 lakh crore and Rs 4 lakh crore, respectively.
The report pointed out that commodities were key contributors to this earnings surge. The oil & gas industry experienced a remarkable 38 percent increase in profits, while the metals sector saw a 34 percent rise from a lower base.
Public sector banks reported an 18 percent increase in profits, and non-banking financial companies (NBFCs) enjoyed a 19 percent profit growth.
The automobile industry, excluding tractors and passenger vehicles, achieved a 27 percent profit growth, bolstered by festive season demand and the impacts of GST rate reductions.
Companies in the capital goods sector recorded a 24 percent earnings increase, supported by strong order inflows and government investments in power transmission, defense, and renewable energy.
The cement industry also made a significant recovery, posting a 46 percent profit increase after several lackluster quarters.
A demand recovery of around 7–8 percent contributed to enhanced performance, with the telecom sector more than doubling its profits to Rs 31 billion in this quarter.
Mid-cap and small-cap firms significantly outperformed, with earnings of Nifty Midcap-150 companies rising by 20 percent year-on-year, and Smallcap-250 companies achieving a 26 percent growth on a softer base. In contrast, Nifty-100 companies experienced an 18 percent earnings increase.
Point of View
I believe that the robust earnings growth reflected in the Nifty-500 index showcases India's economic resilience amidst global uncertainties. This performance not only highlights the strength of various sectors but also signals a positive outlook for investors and stakeholders across the nation.
NationPress
10 May 2026
Frequently Asked Questions
What was the earnings growth of Nifty-500?
The earnings growth of Nifty-500 was 19 percent year-on-year in the third quarter of FY26.
Which sectors contributed most to the earnings growth?
The oil & gas and metals sectors were significant contributors, with profit increases of 38 percent and 34 percent , respectively.
How did the automobile sector perform?
The automobile sector, excluding tractors and passenger vehicles, saw a profit growth of 27 percent .
What was the sales growth for Nifty-500 companies?
Sales growth for Nifty-500 companies increased by 11 percent year-on-year.
How did mid-cap and small-cap companies perform?
Mid-cap companies' earnings grew by 20 percent year-on-year while small-cap companies posted 26 percent growth.
