India Inc posts 14 pc PAT growth despite energy shock: Report
New Delhi, June 4
Despite energy market volatility, Indian corporates closed FY26 on a resilient note, as BSE 500 companies posted an aggregate profit after tax growth of almost 14 per cent year-on-year in Q4FY26, largely in line with the previous quarter's performance, a report said on Thursday.
The report from Emkay Global Financial Services said that robust topline expansion, broad-based sectoral participation, healthy cash flows, and resilient balance sheets strengthened the earnings outlook for FY27.
The earnings momentum was supported by an acceleration in revenue growth, with topline expansion for non-financial companies rising to 12.3 per cent year-on-year compared to 9.2 per cent in the preceding quarter.
While EBITDA margins moderated marginally to 16.4 per cent, earnings quality remained strong, reflecting the underlying strength of corporate India.
The report highlighted the breadth of growth across companies and sectors during the quarter as nearly 59 per cent of BSE 500 companies reported profit growth exceeding 10 per cent year-on-year, while 39 per cent recorded earnings growth of more than 25 per cent.
"This represents a significant improvement over the first half of FY26 and underscores the broad-based nature of the ongoing earnings recovery," the report said.
Corporate earnings also outperformed market expectations, with 48 per cent of Nifty companies delivering positive earnings surprises compared to 32 per cent in the previous quarter, indicating that business fundamentals remain stronger than anticipated.
Consumer discretionary companies were among the strongest performers, with 18 per cent earnings growth, aided by improving consumption trends and demand recovery.
Consumer staples saw over 15 per cent growth, while information technology companies delivered 13.4 per cent earnings growth despite ongoing global macroeconomic uncertainties. Financials also continued their steady performance, recording 13.1 per cent growth and remaining a critical pillar for overall market earnings.
Energy and materials sectors emerged as standout performers, registering growth of 23.8 per cent and 23.1 per cent, respectively.
Mid-cap companies significantly outperformed their larger peers, registering an impressive 34.2 per cent YoY profit growth in Q4FY26, compared to 10.3 per cent growth among large-cap companies and 10.4 per cent growth in the small-cap segment.
— IANS
Reader Comments
Broader sectoral participation is great to see. Consumer discretionary and staples both showing strong growth means people are actually spending more. But I worry about inflation – hope these profits don't come at the expense of household budgets.
Good news for investors! The earnings recovery seems genuine. 59% of BSE 500 companies with >10% profit growth is impressive. But remember, these numbers are backward-looking – let's see how Q1FY27 shapes up with global headwinds. Still, India's story remains strong. 📈
Good that IT companies still grew 13.4% despite global uncertainties – shows our tech sector has diversified well. But I wish the report mentioned whether this growth is inclusive or just benefiting the top end. Still, better than most expected! 👍
The energy sector growing 23.8% despite energy shocks is surprising. Maybe our renewable push is finally paying off? Also, mid-cap outperformance suggests the next leg of growth might come from smaller companies. Good signs for the economy overall.
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