India’s corporate earnings for the second quarter of fiscal 2026 point to a broad-based recovery, with more than 100 companies reporting at least a two-fold increase in profit compared with a year earlier. The improvement spans renewable energy, capital goods, metals, telecom, and select consumption-linked businesses, reflecting both margin recovery and steady demand.
The analysis covers companies with market capitalisation of more than ₹1,000 crore.
Widening Profit Pools Across Sectors
Several firms have reported sharp turnarounds supported by higher operating leverage, better cost efficiencies and sector-specific tailwinds.
Renewable energy companies delivered some of the strongest improvements. Solar and wind manufacturers reported triple-digit profit growth, supported by higher installations and improved balance sheets. Battery manufacturers linked to the electric mobility ecosystem also recorded significant gains due to rising demand and capacity expansion.
Public sector undertakings in refining and capital goods reported higher profitability on the back of improved product spreads, stable input costs and faster project execution. Refining margins remained favourable, contributing to strong earnings for major oil marketing companies.
The metals sector saw a broad recovery as well, with several steel producers reporting stronger operating performance due to stable realisations and disciplined cost control. Cement manufacturers also reported higher profits, supported by firm demand from infrastructure and housing.
Telecom and digital services companies delivered steady results, supported by subscriber additions, tariff improvements and increased data usage.
Examples of Strong Performers
A number of companies across sectors delivered notable profit growth:
- A solar module manufacturer reported profit growth of over 1,000%, supported by higher capacity utilization and strong domestic demand.
- A wind turbine producer posted more than 500% profit growth, aided by improved order execution after several quarters of restructuring.
- A battery manufacturer catering to industrial and EV segments reported more than 400% growth, supported by strong demand across product lines.
- Large capital goods and engineering firms recorded profit growth of over 250%, driven by improved execution in power and transport-related projects.
- Several steel and specialty metals companies reported between 250% and 450% growth due to better spreads and consistent volume growth.
- Telecom services companies reported profit growth close to 175%, supported by tariff improvement and rising average revenue per user.
- Digital platform and consumer internet firms recorded more than 100% growth as operating efficiencies improved and revenue momentum continued.
Sector Commentary and Broader Trends
Brokerage estimates indicate that the BSE 500 universe reported profit growth of around 15.5% in Q2FY26, compared with 11.1% in the first quarter. Margin expansion of nearly 160 basis points year-on-year was a key driver, while topline growth improved to 9.4% from 6.3% in the previous quarter.
Analysts expect earnings growth to accelerate in the second half of the fiscal year, supported by lower wholesale price inflation, improved operating efficiencies, and the impact of recent policy measures aimed at stimulating consumption.
Banks, which weighed on earnings in the first half due to deposit repricing, are expected to see margin improvement as the year progresses. Technology services are also likely to benefit from a gradual pick-up in global spending.
Looking Ahead
While several sectors have delivered strong recoveries, the sustainability of elevated profit growth remains uncertain for some industries. Renewable energy companies have medium-term visibility supported by policy momentum. In contrast, cyclical sectors such as metals and cement could face headwinds if demand moderates or if input costs firm up.
For investors, the earnings season underlines the importance of sectoral positioning and disciplined portfolio review. As companies release guidance for the second half of FY26, focus will shift to order pipelines, margin outlooks and the resilience of domestic demand in an uncertain global environment.