OMCs, banks drove India Inc's steepest profit rise in 8 qtrs

Corporate earnings in October-December 2025 (Q3FY26) were better than expected owing to a surge in the profits of public-sector oil-marketing companies (OMCs), banks, non-bank lenders, and firms in the business of metals and mining.

- KRISHNA KANT

The net profits (adjusted for exceptional gains and losses) of the listed companies grew 14.7 per cent year-on-year (Yo-Y) in Q3FY26, increasing at the fastest pace in the last eight quarters.

For comparison, these companies' adjusted net profits were up 5.7 per cent Yo-Y in Q3FY25 and they have grown 10.6 per cent in Q2FY26. (See the adjoining charts.)

The combined net profits (adjusted) of the 3,353 companies in the Business Standard sample grew to around ₹3.97 trillion in October-December from around ₹3.47 trillion in Q3FY25 and ₹3.67 trillion in Q2FY26.

An earnings windfall in these cyclical sectors from lower prices of crude oil, a cut in the repo rate by the Reserve Bank of India (RBI), and a rally in metal prices more than made up for the onetime financial hit from the implementation of the new labour Codes.

Many large companies, especially in labour-intensive industries such as information-technology services, and banks and other financial services, made a onetime provision for costs related to the Codes, leading to a hit on their net profits adjusted for exceptional gains & losses.