Growth broadens across India Inc: What an 8-quarter earnings review reveals about sectors, risks and returns

Growth broadens, external risks loom

Improving domestic demand, aided by last year’s GST cuts, price hikes and deeper market penetration, helped India Inc post its strongest revenue growth in several quarters. The 1,656 companies tracked reported 18.1% year-on-year revenue growth in the June 2026 quarter.

Source: Bloomberg. Numbers in brackets are the number of companies in each sector. Sector classification as per Bloomberg. 1,656 companies with a market cap of more than Rs.100 crore are considered. The 18 sectors listed in the table constitute 65% of the 1,656 companies. Analysis based on consolidated financials. *includes auto ancillaries.


Aggregate net profit grew at a relatively slower pace of 9% year-on-year, largely weighed down by the weak performance of the oil & gas sector. Oil marketing companies faced significant pressure from higher crude oil prices and under-recoveries on LPG and other petroleum products, which hurt profitability. Excluding the oil & gas sector, aggregate net profit growth rises sharply to 19.6%, underscoring the resilience of earnings across the broader corporate universe.

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The banking sector delivered a strong performance, supported by healthy credit growth, improving asset quality, and benign credit costs. In contrast, NBFCs reported mixed earnings amid margin pressures and elevated funding costs.

The metals & mining sector emerged as one of the standout performers during the quarter despite cost pressures. The automobile sector, including ancillaries, also posted healthy growth, driven by robust retail demand and improving export momentum. However, the sector’s overall performance was affected by weak earnings from Tata Motors’ Passenger Vehicles (PV). An ICRA report flags West Asia tensions, volatile crude and commodity prices, and global trade uncertainty as key risks, but says healthy corporate balance sheets and credit metrics offer a cushion against external shocks.