Growth broadens, external risks loom: ET Wealth earnings assessment

ET Wealth presents an 8-quarter earnings assessment report of various sectors. The year-on-year net profit growth for 18 sectors is presented in the table. The significant variations in the earnings growth highlight the importance of sector diversification for managing risks and returns. By Sameer Bhardwaj.

Improving domestic demand, aided by last year’s GST cuts, price hikes and deeper market penetration, helped India Inc post its strongest revenue growth in several quarters. The 1,656 companies tracked reported 18.1% year-on-year revenue growth in the June 2026 quarter.

Aggregate net profit grew at a relatively slower pace of 9% year-on-year, largely weighed down by the weak performance of the oil & gas sector. Oil marketing companies faced significant pressure from higher crude oil prices and under-recoveries on LPG and other petroleum products, which hurt profitability. Excluding the oil & gas sector, aggregate net profit growth rises sharply to 19.6%, underscoring the resilience of earnings across the broader corporate universe.

The banking sector delivered a strong performance, supported by healthy credit growth, improving asset quality, and benign credit costs. In contrast, NBFCs reported mixed earnings amid margin pressures and elevated funding costs.

The metals & mining sector emerged as one of the standout performers during the quarter despite cost pressures. The automobile sector, including ancillaries, also posted healthy growth, driven by robust retail demand and improving export momentum. However, the sector’s overall performance was affected by weak earnings from Tata Motors’ Passenger Vehicles (PV). An ICRA report flags West Asia tensions, volatile crude and commodity prices, and global trade uncertainty as key risks, but says healthy corporate balance sheets and credit metrics offer a cushion against external shocks.