Indian corporate earnings strengthened in the September 2026 quarter, with revenue rising 22.1% and net profit increasing 27.5% year on year across an early sample of 357 companies. The results available as of October 26 showed stronger growth outside banking and finance, while banking, information technology and pharmaceuticals lost momentum compared with the June quarter.
Key Takeaways
- Revenue growth reached a nine-quarter high, while profit growth accelerated from 9.7% in the June quarter.
- Excluding banking and finance, revenue rose 26.9% and net profit increased 33.9%.
- The aggregate operating margin narrowed, but margins outside lending improved slightly.
Table of Contents
- Indian corporate earnings gain from a softer comparison
- Banking weighs on the aggregate margin
- IT and lending account for smaller earnings shares
- Conclusion
Indian corporate earnings gain from a softer comparison
The early results were supported by select companies in capital goods, metals, consumer durables, chemicals and auto ancillaries. Aggregate profit growth substantially exceeded the June quarter’s pace, alongside the strongest revenue expansion in nine quarters.
A relatively modest year-earlier performance also helped the comparison. Revenue and net profit had grown 6.7% and 12.4%, respectively, in the comparable September quarter of 2025.
These figures describe companies that had already reported, not the completed earnings season. The stronger aggregate therefore shows an early improvement without establishing that the same pace extends across all listed companies.
| Item | Details |
|---|---|
| Lending share of sample revenue | 34.8%, down from 37.3% a year earlier |
| Lending share of sample net profit | 54.6%, down from 56.8% a year earlier |
| IT share of sample revenue | 15.5%, down from 16.8% a year earlier |
| IT share of sample net profit | 18.1%, down from 20.4% a year earlier |
Banking weighs on the aggregate margin
The sample’s operating margin fell 150 basis points year on year to 20.8%, reflecting weaker banking profitability as net interest margins remained under pressure. Excluding lending companies, the operating margin instead improved 20 basis points to 15.1%.
The Reserve Bank of Australia’s explanation of net interest margins describes the measure as net interest income relative to interest-earning assets and explains why narrower margins can reduce bank profits, all else equal. That background clarifies the profitability mechanism; it does not verify the Indian quarterly results.
Removing banking and finance also lifted the sample’s revenue and profit growth to 26.9% and 33.9%, respectively. The contrast shows how lenders’ slower performance restrained the headline growth figures even as several other sectors expanded more strongly.
IT and lending account for smaller earnings shares
Both lending and IT contributed smaller shares of the sample’s revenue and net profit than a year earlier. Those shifts indicate that growth elsewhere outpaced these sectors; a falling share does not by itself mean that their revenue or profit declined.
IT companies continued to face elongated project-execution cycles as clients assessed the business implications of new technologies, particularly artificial intelligence. Banking and finance, IT and pharmaceuticals all recorded slower year-on-year growth than in the June quarter.
Before the results season, Elara Securities (India) had expected double-digit sales growth in 13 of 18 sectors, led by automobiles, consumer discretionary, industrials and nonbanking financial services. Those were analyst expectations, distinct from the results now reported by the 357-company sample.
Conclusion
The remaining September-quarter results will show whether the early acceleration in Indian corporate earnings holds across a broader sample. For now, stronger growth outside lending contrasts with pressure on banking margins and slower momentum in IT and pharmaceuticals.
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Disclaimer
This FinanceVelix article provides general information, not personalized financial, investment, legal, or tax advice. Market prices, interest rates and economic conditions can change; investments carry a risk of loss. Facts reflect the material available when published and may change. Check important information independently and consult a qualified professional when needed. Mentioning an asset, company, or service is not an endorsement.
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