India Inc Q3FY26: Earnings Slow, Revenue Growth Accelerates to 11-Quarter Peak
Overview
India Inc's Q3FY26 results are expected to show a slowdown in net profit growth, hitting a six-quarter low of 5.2% for Nifty 50 companies. However, revenue is forecast to accelerate significantly, reaching an eleven-quarter high of 11.3%, driven by Reliance Industries, Zomato, and auto manufacturers.
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Profit Growth Decelerates
India Inc's net profit growth is poised for a significant slowdown in the October-December quarter (Q3FY26), potentially marking the lowest increase in six quarters. Brokerage estimates project combined net profits for Nifty 50 companies to rise just 5.2% year-on-year. This marks a deceleration from the 7.2% growth seen in Q3FY25 and the 6.6% in Q2FY26.
The earnings slowdown is expected to be led by companies like InterGlobe Aviation (IndiGo), Bharti Airtel, and Shriram Finance. Several firms, including Adani Enterprises and HDFC Life Insurance, are currently missing from available brokerage estimates, adding a layer of uncertainty.
Revenue Expansion Accelerates
In contrast, revenue growth is anticipated to surge, marking the fastest pace in 11 quarters. Combined net sales for Nifty 50 companies are projected to climb 11.3% year-on-year, a notable acceleration from 6.9% in Q3FY25 and 9.2% in Q2FY26. This topline strength is bolstered by key contributors like Reliance Industries, food-delivery aggregator Zomato, and engineering firm Larsen & Toubro, alongside auto majors Maruti Suzuki and Mahindra & Mahindra.
However, certain sectors face headwinds. Coal India, Oil and Natural Gas Corporation (ONGC), and Dr. Reddy’s Laboratories are expected to report year-on-year declines in revenue. Firms in information technology and fast-moving consumer goods, such as Tata Consultancy Services, Infosys, Hindustan Unilever, and ITC, are predicted to continue struggling with low single-digit revenue and earnings growth.
Sectoral Outlook Mixed
Analysts forecast that sectors including Oil & Gas, NBFC-Lending, Automobiles, Metals, Telecom, Technology, Real Estate, Capital Goods, and Cement will anchor overall earnings growth, collectively contributing an estimated 77% of the incremental year-on-year accretion. These segments are showing resilience.
However, firms in the IT and FMCG spaces are expected to face persistent challenges, continuing their pattern of subdued performance. This divergence highlights sector-specific dynamics at play within the broader Indian economy.
