Commodities spur India Inc's Sep qtr showing

Other key sectors continue to struggle with low single-digit growth in revenues and earnings

- KRISHNA KANT

Companies’ growth in earnings during July-September (Q2FY26) went up, but the increase was led largely by producers of commodities.

Earnings for the rest of India Inc worsened during the quarter with a further slowdown in revenues and profit growth.

Net profits of all 2,647 listed companies that declared their results for the quarter were up 10.8 per cent, the best in the last six quarters.

Companies excluding banks, financial services and insurance (BFSI) performed even better with 15.3 per cent year-on-year (Yo-Y) growth in their combined earnings in the second quarter, the best since Q3FY24.

However, net profits of companies other than BFSI and commodity producers were up just 6.3 percent Yo-Y in Q2FY26, growing at the slowest pace in at least the last 17 quarters.

For comparison, net profits of these companies (ex-BFSI and commodities) were up 11.4 per cent Y-0-Y in Q2FY25 and increased 6.8 per cent Yo-Y in Q1FY26.

“Overall corporate earnings in Q2FY26 beat earlier estimates driven by commodities such as oil & gas, cement and metals. Barring global commodities — metals and oil & gas — our universe posted 6 per cent Y-0-Y earnings growth vs our estimate of 2 per cent,” wrote analysts at Motilal Oswal Financial Services in their interim earnings review for Q2FY26.