Q4 FY26 earnings: Metal companies lead growth, backed by robust volumes and favourable pricing trends

The year-on-year net profit growth for 18 sectors is presented in the table. The significant variations in the earnings growth highlight the importance of sector diversification for managing risks and returns.

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Improved volumes and tighter cost control supported India Inc.’s performance in the March quarter. A total of 1,762 companies with market capitalisation exceeding Rs.100 crore reported aggregate net profit growth of 21.5% year-on-year, marking the third successive quarter of double-digit earnings expansion.

Source: Bloomberg. Figures in brackets are the number of companies in each sector. Sector classification according to Bloomberg. 1,762 companies with a market cap of more than Rs.100 crore are considered. The 18 sectors listed in the table constitute 88% of the 1,762 companies. Analysis based on consolidated financials. *Includes auto ancillaries.


On a sectoral basis, metals were key in driving overall earnings growth, helped by robust volumes and favourable pricing trends. Excluding metals, the broader earnings growth moderated to around 17%. The banking sector’s performance was mixed—while loan growth stayed healthy across the industry, private banks outperformed state-run lenders.

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The IT sector still faces headwinds, with management commentary being cautious. Weak discretionary spending and slower decision-making cycles continue to weigh on growth visibility. Additionally, the rising adoption of artificial intelligence could be a potential deflationary force.

The cement sector saw strong volume growth, amid rising construction activity and government spending. However, rising input costs weighed on margins.

In healthcare, the pharma segment continued to face pricing pressure and higher costs. Domestic formulations fared well, aided by recovery in acute therapies and sustained momentum in chronic therapies. In contrast, the hospitals segment saw a steady growth, driven by resilient demand and stable occupancy levels.

Going forward, a Motilal Oswal earnings review report expects financials, metals, telecom, and technology to emerge as key growth drivers in 2026-27.