Q2 FY2025-26: Indian quarterly results 2025 Trend Report

Date: November 01, 2025. Indian quarterly results 2025, Q2 FY26 results| sector performance India| earnings season India| Nifty earnings trend| Indian market outlook| top companies quarterly results

The September 2025 quarter (Q2 FY2025-26) marked one of the most revealing earnings seasons for India Inc. Amid global uncertainty, moderate GDP growth, and the RBI’s cautious stance on inflation, corporate India delivered a balanced yet resilient performance.

While the broader economy grew around 6.4% year-on-year, listed companies collectively recorded revenue growth of ~5.3% and profit growth of ~13.6%, according to data from Moneycontrol and Trendlyne. The quarter showcased strength in oil & gas, metals, and auto, while IT, banking, and FMCG experienced margin pressure and muted topline growth.

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📊 Overall Earnings Overview

The Q2 earnings season saw over 1,100 NSE-listed companies declare results.

• Aggregate revenue: ₹24.9 lakh crore (+5.3% YoY)
• Aggregate net profit: ₹2.84 lakh crore (+13.6% YoY)
• EBITDA margin: Improved from 17.1% to 18.2%
• PAT margin: Expanded by 70 bps YoY

This indicates that profitability improved faster than revenue, driven by cost control, lower input prices in some sectors, and higher efficiency in operations.

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🏭 Sector-Wise Performance Breakdown

1️⃣ Information Technology (IT & Tech)

• Trend: Marginal growth; global slowdown continues to weigh on demand.
• Top firms: TCS, Infosys, Wipro, HCL Tech, Tech Mahindra.
• Revenue growth: 2–4% YoY; Profit growth: flat to -2%.
• Drivers: Cloud, AI, and digital transformation contracts remain stable; BFSI clients in the US show delayed spending.
• Outlook: Cautious optimism. Analysts expect recovery from mid-2026 once US interest rate cuts begin.

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2️⃣ Banking & Financial Services

• Trend: Mixed; loan growth strong but NIM compression visible.
• Top firms: HDFC Bank, ICICI Bank, SBI, Axis Bank, Kotak Mahindra Bank.
• Loan book growth: 13–15%; Net profit: 8–10% YoY.
• Pressure points: Rising deposit costs; RBI’s tighter liquidity stance.
• Positive: Asset quality remains strong, NPAs at multi-year lows.
• Outlook: Stable earnings with slight NIM pressure; retail credit remains engine of growth.

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3️⃣ FMCG (Fast-Moving Consumer Goods)

• Trend: Volume recovery modest; rural demand improving slowly.
• Top firms: Hindustan Unilever, ITC, Nestlé India, Dabur, Marico.
• Revenue growth: 3–4% YoY; Profit growth: 6–7% YoY.
• Key note: ITC continued to post strong hotel and paper growth; HUL margin expanded slightly.
• Outlook: Gradual pick-up expected in H2 FY26 with festive push and softening inflation.

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4️⃣ Oil, Gas & Energy

• Trend: Strong rebound with crude volatility; refining margins remained favorable.
• Top firms: Reliance Industries, ONGC, IOC, BPCL, GAIL.
• Revenue growth: 9–12%; Net profit: +20–25% YoY.
• Drivers: Stable refining spreads, gas marketing improvement, petrochemical rebound.
• Outlook: Continued growth supported by energy demand and new refining projects.

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5️⃣ Auto & Auto Ancillaries

• Trend: Strong double-digit growth driven by robust passenger and CV sales.
• Top firms: Maruti Suzuki, Tata Motors, Mahindra & Mahindra, Bajaj Auto, Eicher Motors.
• Revenue growth: 12–15%; Profit growth: 18–22%.
• Drivers: Demand resilience, EV adoption, and export momentum.
• Outlook: FY26 expected to maintain 10%+ growth, aided by new EV launches and premiumization.

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6️⃣ Metals & Mining

• Trend: Recovery in profitability after several weak quarters.
• Top firms: Tata Steel, JSW Steel, Hindalco, Vedanta, NMDC.
• Revenue growth: 7%; Profit growth: 25% YoY.
• Reason: Price stability in steel/aluminium and cost optimization.
• Outlook: Dependent on China demand; stable to positive trajectory expected.

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7️⃣ Infrastructure & Cement

• Trend: Massive expansion in profit margins; government capex push continues.
• Top firms: UltraTech Cement, Ambuja, ACC, L&T.
• Revenue growth: 8%; Profit growth: 30%+.
• Cement volumes: Up 10% YoY; infra orders strong.
• Outlook: Remains one of the most bullish sectors for FY26 due to pre-election infra spending.

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8️⃣ Pharmaceuticals & Healthcare

• Trend: Mixed; domestic sales steady, US generics under price pressure.
• Top firms: Sun Pharma, Dr. Reddy’s, Cipla, Lupin.
• Revenue growth: 5%; Profit growth: 6–8%.
• Outlook: Margins to improve as R&D intensity rises; moderate growth expected in FY26.

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💼 Top 10 Companies – Highlights of Q2 FY2025-26

Company	Revenue YoY	Profit YoY	Key Takeaway
Reliance Industries Ltd	+11%	+23%	Strong refining & telecom; Jio platforms profit up 18%
HDFC Bank	+14%	+9%	Solid loan growth; NIM contraction observed
Tata Consultancy Services (TCS)	+3%	+2%	Steady order book; slight margin improvement
Infosys Ltd	+2%	+1%	Flat growth; robust AI-led deal pipeline
ICICI Bank	+13%	+11%	Retail credit drives growth; stable asset quality
ITC Ltd	+5%	+10%	Hotels & paper drive profit; FMCG stable
Tata Steel	+8%	+22%	Improved realizations, lower coking coal prices
Maruti Suzuki	+12%	+19%	Robust SUV sales, record quarterly profit
Larsen & Toubro	+9%	+16%	Order inflows strong, infra execution robust
Sun Pharma	+4%	+7%	Domestic sales steady; specialty portfolio rising

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📈 Market Reaction

• Nifty 50 rose by around 2.3% during the result season (Oct 15–Nov 1, 2025).
• Sectors driving gains: Auto, Metal, Oil & Gas, Infra.
• Sectors under pressure: IT, FMCG, PSU Banks.
• FIIs: Turned net buyers after 2 months of selling; flows of ₹8,700 crore recorded.
• DIIs: Continued steady accumulation in large caps.

Volatility persisted due to US interest rate expectations and global cues, but India’s earnings stability reaffirmed its “premium valuation” narrative.

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💬 Retail Investor Insights

1. Stock-specific focus is key: The divergence across sectors shows that selective investing yields better results than broad index exposure.
2. Midcaps remain strong: Many midcap companies posted 20–30% profit growth; momentum remains.
3. Dividend plays & buybacks: FMCG, IT, and Oil sectors remain steady sources of yield.
4. Short-term caution: Volatility around Fed decisions and crude oil prices can cause sector rotation.
5. Long-term comfort: India remains among the few large economies with 6–7% sustainable growth and improving corporate profitability.

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🔮 One-Year Projection (FY2026-27 Outlook)

Indicator	FY2025-26E	FY2026-27E (Projected)	Trend
Revenue growth (India Inc)	6.5%	7.8%	Gradual improvement
Net profit growth	12%	13.5%	Steady upward trend
EBITDA margin	18.2%	18.6%	Minor expansion
Top sectors	Auto, Infra, Energy, Pharma	Auto, Infra, Banking
Weak sectors	IT, FMCG	IT recovery expected H2 FY27

• Earnings to remain robust in Auto, Infra, Energy.
• IT sector likely to bottom out by mid-FY27 as AI and cloud deals gain pace.
• Banking expected to regain margin expansion once deposit cost stabilizes.
• Equity market valuations to remain premium, supported by earnings growth and political stability in election year 2026.

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❓ FAQs on Quarterly Results and Market Trends

Q1: Why are profits growing faster than revenue this quarter?
A1: Companies optimized costs, improved supply chains, and benefited from stable commodity prices, which expanded margins even though topline growth was modest.

Q2: Which sector performed best in Q2 FY26?
A2: Auto, Metals, and Infra delivered the strongest double-digit profit growth due to demand and cost efficiency.

Q3: Did IT companies underperform?
A3: Yes, the IT sector showed flat results due to global macro uncertainty, but long-term fundamentals remain intact.

Q4: How did the market react to the Q2 results?
A4: The Nifty 50 rose moderately as strong large-cap results offset weakness in IT and FMCG; investors favored cyclical sectors.

Q5: What should retail investors focus on now?
A5: Focus on quality companies with stable cash flows, moderate valuations, and visible growth triggers for FY26–27.

Q6: Is inflation still a risk?
A6: Yes, food inflation remains sticky, but core inflation is easing. RBI expected to stay on hold until mid-2026.

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🪶 Conclusion

The Q2 FY2025-26 results confirm that India’s earnings cycle remains on a steady, positive trajectory. Profitability is improving even with slower revenue growth — a sign of operational maturity. With strong macro fundamentals, infrastructure push, and healthy domestic consumption, India’s corporate performance remains a standout in global markets.

Investors should stay stock-specific, maintain exposure to auto, infra, energy, and keep an eye on IT recovery from H2 FY27. The coming quarters may see consolidation, but long-term prospects remain robust.

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