Archive · 17 Aug 2025
Indian Corporate Earnings Show Broad-Based Growth In Q1 FY26
India's businesses started FY26 on a better note, according to a new report.
Companies generally made more money than before, with many sectors showing strong profit growth.
Although the Nifty-50, a group of important companies, grew slower, the overall earnings were good.
Experts predict profits will continue to improve throughout the year, with some sectors doing better than others.
The report points to a positive outlook for the Indian economy, despite some areas of concern.
Corporate India showed stronger footing in Q1 FY26, transitioning from subdued earnings growth.
16 out of 25 sectors experienced double-digit profit growth, with aggregate earnings up 11% YoY.
Financials, energy, and telecom sectors showed resilience, contributing significantly to earnings.
Nifty-50 earnings increased 8% YoY, marking the fifth consecutive quarter of single-digit growth.
Motilal Oswal projects 12% profit growth for its coverage universe in FY26, driven by financials, metals, and oil & gas.
- Who
- Corporate India, Motilal Oswal Financial Services (MOFSL)
- What
- Corporate earnings in India showed broad-based growth in Q1 FY26.
- When
- Q1 FY26, with projections for FY26.
- Where
- India
- Why
- Driven by better sectoral breadth and resilience in key sectors.
Areas of Concern
Positive Outlook
Future Growth
Areas of Concern
Earnings downgrades continued to outpace upgrades.
Positive Outlook
Nifty-50 EPS expected to recover to 9% in FY26.
- Headline
- Q1 FY26 was the 'Crossover Quarter' marking transition to sustainable double-digit growth.
- Earnings Growth
- Aggregate earnings rose 11% YoY.
- Sectoral Performance
- 16 sectors delivered double-digit growth.
- Nifty-50
- 8% YoY profit growth.
- Mid-Cap Growth
- 24% YoY.
- FY26 Projection
- 12% profit growth expected for MOFSL's coverage universe.
