MUMBAI — Aggregate earnings for companies in the Nifty-500 universe rose 15 percent in the second quarter of FY26, the strongest performance in five quarters despite weak consumption trends and continuing geopolitical headwinds, according to a report released Thursday.
Oil and gas stocks, led by oil marketing companies, accounted for much of the earnings strength. Their EBITDA and profit after tax climbed 48 percent and 59 percent, respectively, Motilal Oswal Financial Services said in its analysis.
When metals and oil and gas companies were excluded, aggregate earnings rose 9 percent year-over-year. Excluding financial stocks, the Nifty-500 universe posted earnings growth of 20 percent.
Sales, EBITDA, and adjusted profit after tax rose to about Rs 35 trillion, Rs 8 trillion, and Rs 4 trillion, representing annual increases of 8 percent, 12 percent, and 15 percent.
Earnings gains were broad-based across several sectors. Non-banking financial companies rose 21 percent, metals gained 18 percent, cement jumped 211 percent, capital goods climbed 30 percent, telecom returned to profitability, retail advanced 32 percent, and real estate rose 22 percent.
Cement delivered its second consecutive strong quarter, with sales up 18 percent and EBITDA rising 49 percent, while earnings came in at more than three times last year’s level. Chemicals and consumer durables also saw strong growth off a soft base, while automobiles fell 16 percent, private banks slipped 3 percent, and media declined 10 percent.
Ferrous metal companies benefited from strong volumes and lower costs, while non-ferrous gains came from favorable prices and stable output.
Midcap and small-cap companies outperformed large caps. The Midcap-150 group saw earnings rise 27 percent and the Smallcap-250 gained 37 percent. Weakness in private banks and autos contributed to the relative underperformance of large caps compared with smaller firms, the report said. (Source: IANS)
