India Inc showcased its best earnings performance in the last eight quarters during the third quarter of FY26, driven by widespread sectoral growth and improving demand trends. According to a report by Motilal Oswal Financial Services, the aggregate earnings of the Nifty 500 universe surged by 19% year-on-year in 3QFY26. Excluding financial stocks, the earnings growth was even higher at 23%, demonstrating robust performance across various sectors.
Aggregate sales of Nifty-500 companies also saw a significant uptick, with an 11% year-on-year increase, marking the highest growth in the past 11 quarters. Total sales for the quarter amounted to around Rs 36 lakh crore, with EBITDA and adjusted profit after tax reaching approximately Rs 8 lakh crore and Rs 4 lakh crore, respectively.
The report emphasized the role of commodities in driving earnings growth, with the oil & gas sector registering a 38% profit surge, while metals witnessed a 34% growth on a lower base. Public sector banks recorded an 18% growth, and NBFC lending companies reported a 19% rise in profits.
In specific sectors, the automobile industry, excluding tractors and passenger vehicles, experienced a 27% growth in profits, supported by festive demand and the impact of GST rate reductions. Capital goods companies reported a 24% earnings growth, attributed to strong order inflows and government spending in power transmission, defense, and renewable energy.
The cement sector also made a remarkable comeback, reporting a 46% growth in profits after facing several weak quarters. A demand recovery of around 7–8% significantly contributed to this positive performance. The telecom sector more than doubled its profits to Rs 31 billion during the quarter.
During the quarter, mid- and small-cap companies outperformed, with earnings of Nifty Midcap-150 companies growing by 20% year-on-year, and Smallcap-250 companies posting a 26% growth on a softer base. In comparison, earnings of Nifty-100 companies rose by 18%.
