Indian corporates concluded FY26 on a positive note, with BSE 500 companies showing nearly 14% year-on-year growth in profit after tax (PAT) in Q4FY26, aligning closely with the previous quarter’s performance. Emkay Global Financial Services’ report highlighted robust revenue growth, broad sectoral participation, healthy cash flows, and strong balance sheets, enhancing the earnings outlook for FY27.
The earnings upswing was fueled by accelerated revenue growth, with non-financial companies witnessing a 12.3% year-on-year increase in topline expansion, up from 9.2% in the prior quarter. Although EBITDA margins slightly dipped to 16.4%, the quality of earnings remained robust, showcasing the resilience of Indian corporations.
The report emphasized widespread growth across companies and sectors during the quarter, with almost 59% of BSE 500 companies reporting profit growth exceeding 10% year-on-year, and 39% achieving earnings growth surpassing 25%. This improvement over the first half of FY26 underscores the broad-based nature of the ongoing earnings recovery.
Corporate earnings surpassed market expectations, with 48% of Nifty companies delivering positive earnings surprises, indicating stronger business fundamentals than anticipated. Notably, consumer discretionary companies excelled, with 18% earnings growth, supported by improving consumption patterns and demand recovery.
