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Key Points

India's listed companies are anticipated to experience a robust 9% revenue growth in Q2 FY26, according to Equirus Securities' latest report. Mid-cap sectors are expected to lead the earnings expansion with high-teen growth, while large and small caps maintain steady performance. The automotive sector shows interesting dynamics with wholesale and retail sales displaying varied trends. Despite challenges in banking and financial services, overall corporate indicators suggest a positive economic momentum.

Key Points: India Inc Revenue Set for 9% Q2 Growth Amid Sector Variations

  • Corporate revenue projected to grow 9% in Q2 FY26
  • Mid-cap sectors showing strongest earnings performance
  • Auto segment displays mixed wholesales and retail trends
  • BFSI sectors facing moderate growth challenges
2 min read

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

Equirus Securities forecasts 9% revenue growth for India's listed companies, with mid-caps outperforming and sector-specific performance dynamics.

"Mid-caps are expected to deliver strong high-teen earnings growth - Equirus Securities 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.

- IANS

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Reader Comments

R
Rohit P
Interesting how the GST cut announcement affected auto sales. People waited for discounts during Navratri - typical Indian consumer behavior! 😄 Good to see the festival season giving the much-needed boost to the economy.
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Arjun K
While the overall numbers look positive, I'm concerned about the BFSI sector challenges. As someone working in banking, we're seeing increased competition and margin pressures. Hope the government addresses these sector-specific issues.
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Sarah B
The export numbers are impressive! 26% growth in two-wheeler exports and 24% in passenger vehicles shows Indian manufacturing is becoming globally competitive. Make in India initiative seems to be working well 👍
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Vikram M
Mid-caps delivering high-teen earnings growth is the real story here! This suggests smaller companies are becoming more efficient and competitive. Good for retail investors who often invest in mid-cap stocks.
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Kavya N
The commercial vehicle growth numbers are promising - 13-15% for LCVs shows small businesses and logistics sector are expanding. This indicates broader economic recovery beyond just corporate profits.
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Michael C
While the report is optimistic, I hope this growth reaches the common man. Corporate profits don't always translate to better living standards for ordinary citizens. Need to ensure inclusive growth across all sections of society.

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