New Delhi: Indian companies ended FY26 on a strong footing despite fluctuations in global energy markets, with firms in the BSE 500 index reporting an aggregate profit after tax (PAT) growth of nearly 14 per cent year-on-year in the fourth quarter, according to a report released on Thursday.
The report by Emkay Global Financial Services noted that healthy revenue growth, participation from a wide range of sectors, strong cash flows, and resilient balance sheets have reinforced expectations for continued earnings growth in FY27.
Revenue growth accelerated during the quarter, with non-financial companies posting topline growth of 12.3 per cent year-on-year, up from 9.2 per cent in the previous quarter. Although EBITDA margins eased slightly to 16.4 per cent, overall earnings quality remained robust, reflecting the underlying strength of corporate India.
The report highlighted that growth was broad-based across industries. Nearly 59 per cent of BSE 500 companies recorded profit growth of more than 10 per cent year-on-year, while 39 per cent reported earnings growth exceeding 25 per cent. According to the report, this marks a significant improvement over the first half of FY26 and points to a widespread recovery in corporate earnings.
Corporate performance also surpassed market expectations. Around 48 per cent of Nifty-listed companies delivered earnings above analysts’ estimates, compared with 32 per cent in the previous quarter, indicating stronger-than-expected business fundamentals.
Among sectors, consumer discretionary companies emerged as key performers, registering 18 per cent earnings growth on the back of improving consumer demand and spending trends. Consumer staples companies posted growth of more than 15 per cent, while information technology firms recorded 13.4 per cent earnings growth despite continuing global economic uncertainties.
The financial sector remained a major contributor to market earnings, reporting steady growth of 13.1 per cent. Meanwhile, the energy and materials sectors stood out with earnings growth of 23.8 per cent and 23.1 per cent, respectively.
Mid-cap companies significantly outperformed both large-cap and small-cap peers during the quarter. Mid-caps reported an impressive 34.2 per cent year-on-year profit growth in Q4FY26, compared with 10.3 per cent growth among large-cap companies and 10.4 per cent growth in the small-cap segment.
The report suggests that strong earnings momentum across sectors and company sizes has positioned India Inc favourably for the coming financial year.
With inputs from IANS