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Corporate Earnings Q3FY26: Double digit growth accelerates!!

ICICIdirect Research 13 Feb 2026 DISCLAIMER

Adjusted for exceptional costs related to provisioning due to change in labour code, Nifty earnings growth for Q3FY26 is pegged healthy at 9% YoY ahead of street expectations (5-7%)
This is encouraging amidst fluid global macro-economics and geo-political tensions.
The domestic economy got a fillip from reduced GST rates (effective 22nd Sep) during the quarter with auto sector reporting healthy ~20% volume growth and high single digit volume growth in FMCG space.
Topline growth for the quarter is pegged at 8.5% YoY.
Ex financials, PAT growth at Nifty is pegged a tad higher at 9.6% YoY.
In Financials space, PAT growth came in at 8.2% YoY, aided by double digit credit growth and stable asset quality. 


Notably broader markets reported much better numbers.
Midcaps reported an earnings growth of 20% YoY while the same for small cap domain stood at 28% YoY
All listed companies put together reported a PAT growth of 18% YoY, interestingly however, excluding Nifty 50 the same stood at healthy 26% YoY
This is the second consequent quarter of double-digit earnings growth for the listed space which in Q2FY26 stood at 12% and this quarter stood at 18% i.e. earnings growth accelerated.
The biggest delta to earnings came from the commodity pack, especially Oil & Gas space wherein oil refiners posted stellar earnings.
OMCs reported strong earnings for Q3FY26. Average GRM’s for the quarter stood at $11.4/bbl, an increase of 135% YoY ($4.9/bbl in Q3FY25)

Nifty PAT Break-Up (ex-financials)
On the sectoral front, Telecom, Capital Goods and Metals outperformed.
While IT, Power and Pharma underperformed.
As on date, we stick to our Nifty target of 29,500 over next 12 months, valuing the index at 21x PE on FY28E EPS of ₹ 1,400
We shall revisit aggregate Nifty EPS and Nifty target as the result season concludes.
 

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