New Delhi, Nov 19 Earnings of India Inc that have released quarterly results so far, grew around 14 per cent year‑on‑year in Q2 FY26, driven largely by oil and gas, technology, cement, capital goods and metals, a report said on Wednesday.
The report from brokerage firm Motilal Oswal Financial Services Limited said that market cap wise, mid‑caps led with 26 per cent while large‑caps posted 13 per cent growth, and small‑caps lagged, weighed down by private banks, non-lending NBFCs, technology, retail and media posting an earnings decline.
MOFSL’s 151‑company universe, excluding global commodity movers, posted 6 per cent earnings growth versus its estimate of 2 per cent, while ex‑financials earnings grew 25 per cent.
Five sectors accounted for 86 per cent of the incremental year‑on‑year earnings accretion, the report noted. Earnings of the 27 Nifty companies that have declared results so far have grown 5 per cent.
Mid‑caps extended a three‑quarter streak of strong performance, with notable gains in technology, cement, metals, PSU banks, real estate and non‑lending NBFCs.
Sectoral analysis showed that overall earnings growth was driven by Oil and Gas which grew 79 per cent YoY, cement up 147 per cent and technology up 8 per cent.
"Although Indian equities have registered a lacklustre performance over the past one year, we continue to highlight that the Indian markets now appear to be in a healthy state vs. last year," the brokerage said.
"The earnings cycle is bottoming out, with growth expected to accelerate into double digits. Valuations are reasonable, with the Nifty trading at 21.4x, near its LPA of 20.8x. Any signs of earnings growth acceleration should support valuation expansion," it added.
MOFSL said that Nifty EPS estimates were marginally raised for FY26 to Rs 1,101 from Rs 1,096 and to Rs 1,278 from Rs 1,274 for FY27, the report added.
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