Corporate Grapevine     

Published: October 31, 2025
Updated: October 31, 2025

Corporate India posts steady 2QFY26; metals, OMCs lift earnings

India Inc delivered a steady 2QFY26 earnings performance, with early numbers from the Nifty-50 showing modest growth even as consumption softness lingered. Revenue, EBITDA and PAT rose 8.6%, 9.1% and 3.1% YoY respectively for 26 companies that have reported so far. Metals & mining and oil marketing companies led the upside, aided by adventitious gains and stronger-than-expected integrated margins.

Consumer companies saw weak volume trends as GST transition-related de-stocking weighed on staples demand. Urban recovery signs emerged, but profitability remained under pressure for most staples players. Auto players did not see meaningful GST-cut-driven volume bump, but analysts expect momentum to return in 3QFY26 with underlying demand improvement and channel restocking.

Banks and IT firms delivered largely in-line performances. Lenders reported modest credit growth, stable asset quality and slightly better-than-expected NIMs, with large banks seeing stabilization in unsecured portfolios. IT services providers saw growth stabilize and margins hold, but commentary remained cautious amid macro uncertainty and disruption risks. Despite mixed signals, companies retained a neutral-to-positive tone, prompting mild upgrades to earnings forecasts. Nifty-50 net profit is expected to grow 10%/17% in FY26E/27E, broadly unchanged post results, with HDFC Bank, ICICI Bank and Reliance driving the upgrades.

Consumption lag, but outlook steadies

The 2QFY26 earnings season has so far delivered modest but reassuring trends, with the Nifty-50’s reported pack posting mid-single-digit revenue and profit growth broadly in line with expectations. Strength in metals and oil marketing companies offset continued weakness in mass-consumption categories, keeping overall earnings ahead of estimates. JSW Steel stood out with a sizeable earnings beat, even as Coal India and UltraTech Cement underperformed forecasts.

Consumer companies faced another soft quarter as GST-related de-stocking dragged volumes, hurting staples most. Profitability remained weak, though some firms flagged improving urban sentiment. Analysts expect volume improvement in 3QFY26 supported by demand recovery and restocking. Auto makers saw limited benefit from GST-cut expectations during the quarter, with a pickup only visible in October.

Financials and IT services reported steady trends. Banks recorded moderate loan growth, stable-to-improving asset quality and resilient margins. IT service firms saw stabilized growth and preserved margins but stayed guarded given macro headwinds and technology disruption risks.

Broadly, management commentary across sectors remained balanced-to-positive, helping lift Nifty-50 earnings estimates modestly. FY26E/FY27E net profit growth forecasts remain solid at 10%/17%, supported by upgrades in names like HDFC Bank, ICICI Bank and Reliance Industries.