India Inc’s revenue expected to grow 9 pc in Q2 FY26: Report

New Delhi, Oct 10 India's listed universe is set to grow 9 per cent in revenue in Q2 FY26, with EBITDA and PAT also expected to rise by 9 per cent, a report said on Friday.

This growth is attributed to strong performance in oil marketing companies (OMC), although it is moderated by challenges in the banking, financial services, and insurance (BFSI) sectors, according to Equirus Securities' forecast for its coverage universe.

Mid-caps are expected to deliver strong high-teen earnings growth, outpacing large and small caps, though sales growth remains similar across caps, the broking firm said.

Excluding BFSI sectors, EBITDA and PAT are projected to rise by 16 per cent and 19 per cent, respectively. Without OMCs, EBITDA and PAT are projected to rise by 6 per cent and 5 per cent, the report said.

Autos displayed mixed trends as overall two-wheeler wholesales rose by 10 per cent year-on-year, with exports rising 26 per cent. However, 2-Wheeler retail sales in the quarter increased only 1 per cent, as customers postponed purchases following the GST cut announcement. Demand remained subdued through most of Q2 but recovered sharply during the Navratri festival, coinciding with the implementation of the GST cuts.

Passenger vehicle wholesales rose 3 per cent, while exports jumped by 24 per cent. Medium and Heavy Commercial Vehicles (MHCV) truck wholesales are expected to rise by 6–7 per cent, while Light Commercial Vehicles (LCVs) may see a rise of 13–15 per cent. OEM margins are expected to improve sequentially, supported by operating leverage benefits from higher volumes.

Within the tyre segment, replacement volumes are expected to grow high-single digit, OEM volumes are expected to grow mid-single digit while exports are expected to be moderate, the report said.

Margins of ancillary companies are expected to improve, driven by operating leverage benefits, the broking firm said.

Equirus Securities forecasted asset quality trends to remain healthy across most segments of corporate and retail credit. Trends are likely to improve in MFI and credit cards, the report said, while the research house expects some uptick in delinquencies in the vehicle finance segment.

AMCs' EBITDA is expected to grow by 3–6 per cent sequentially due to quarterly average asset under management (QAAUM) growth, although overall earnings may decline due to lower treasury income.

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