Nifty 50 Q4 Earnings Review: Airtel, JSW Steel Lead Gains While Pharma, Energy Stocks Weigh

Indian companies delivered stronger-than-anticipated earnings in the fourth quarter of FY26, supported by broad-based growth across several sectors. According to Motilal Oswal Financial Services, companies under its coverage reported aggregate profit growth of 16% year-on-year (YoY), significantly higher than the brokerage’s estimate of 8%.

The upside was largely driven by financial services, metals and oil marketing companies. Profit growth in the BFSI segment stood at 18% YoY against expectations of 11%, while metals companies recorded 50% growth compared with an estimate of 24%. The earnings of oil marketing companies were up by 62%, surpassing the expectation of 7%.

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Nifty 50 Continues String of Nine Consecutive Earnings Years With Single-Digit Growth

While the overall performance was strong, companies in the Nifty 50 had earnings growth of just 4% on a yearly basis in Q4 FY26. This marked the eighth consecutive quarter of single-digit growth for the benchmark index. The figure was, however, ahead of expectations for a 2% increase.

Among the 50 index constituents, 18 companies exceeded earnings estimates, 17 delivered results in line with projections, while 15 reported profits below expectations.

Motilal Oswal noted that excluding Reliance Industries, which reported a 13% decline in profit, and InterGlobe Aviation, which posted a loss, Nifty 50 earnings growth stood at 9% YoY.

Companies That Drove Earnings Growth

Five companies accounted for nearly 75% of the incremental earnings growth within the index. These were Bharti Airtel, JSW Steel, HDFC Bank, Infosys and Tata Consultancy Services (TCS).

Among individual performers, Eternal reported the highest profit growth, with net profit rising 346% YoY. The revenue grew 196% while the EBITDA jumped by 575%. JSW Steel was next, reporting an increase in its net profit by 118%. 

This is largely attributed to the rising cost of steel and the widening margins. Revenue grew 14% and EBITDA expanded 50%. Tata Steel posted an 81% increase in profit, alongside 13% revenue growth.

Other companies reporting strong profit expansion included Mahindra & Mahindra, Shriram Finance, Apollo Hospitals, Tata Consumer Products, Asian Paints, Bajaj Auto, Titan Company, Nestlé India, Trent, Bajaj Finance, Infosys and UltraTech Cement.

Stocks That Lagged During The Quarter

Several large-cap companies reported weaker earnings. Dr Reddy’s Laboratories recorded the steepest decline, with net profit falling 86% YoY due to an impairment charge linked to its discontinued oncology programme.

Cipla reported a 54% decline in profit and a 3% drop in revenue. Power Grid Corporation’s profit before deferred tax adjustment fell 24%, while revenue declined 9%.

Other companies that reported lower profits included Axis Bank, SBI Life Insurance Company, Wipro, Max Healthcare Institute, Tata Motors Passenger Vehicles, Maruti Suzuki India, Reliance Industries, Jio Financial Services and Sun Pharmaceutical Industries.

For FY26, Nifty earnings per share (EPS) stood at ₹1,065, reflecting growth of 5% over the previous year and marking a second consecutive year of single-digit expansion. Following the March-quarter results, Motilal Oswal reduced its FY27 Nifty EPS estimate by 0.9% to ₹1,235 from ₹1,246, citing revisions in earnings expectations for SBI, Reliance Industries, JSW Steel, ONGC and Coal India.